Is the Party Over for Carvana Stock?
If you based your opinion only on the stock market's short-term double-digit sell-off in reaction to 's (NYSE: CVNA) third-quarter results last week, you might think the best days for the online auto sales leader were behind it -- or at the very least, that some pretty dismal times were ahead of it.
But if you step back, dig into the numbers, look at the industry competition and deep support on Wall Street, you might come to a different conclusion about the Arizona-based retailer's prospects.
For starters, Carvana came into earnings day riding about a 90% year-to-date gain, and an all-time high hit in July -- far outpacing its auto and retail industry peers. While Carvana's Q3 GAAP earnings per share (EPS) fell well short of analysts' consensus estimate ($1.03 versus $1.32), the miss marked only the first time in 11 quarters that the company delivered a bottom-line disappointment.
Source Fool.com
Carvana Co. Stock
The stock is an absolute favorite of our community with 58 Buy predictions and no Sell predictions.
On the other hand, the target price of 389 € is below the current price of 392.6 € for Carvana Co., so the potential is actually -0.92%.
