With a market cap of $61.6 billion, Carvana Co. (CVNA) is an e-commerce company that specializes in buying and selling used cars through a fully online platform. The company offers services such as vehicle acquisition, inspection, financing, and delivery.
Companies valued more than $10 billion or more are generally considered “large-cap” stocks, and Carvana fits this criterion perfectly. In addition to its retail operations, Carvana also runs auction sites and provides post-sale customer support.
Shares of the Tempe, Arizona-based company have declined 38.2% from its 52-week high of $486.89. Over the past three months, its shares have decreased 33.8%, lagging behind the broader State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) nearly 10% dip during the same period.
CVNA stock has fallen 31.4% on a YTD basis, underperforming XLY's 7.9% drop. However, shares of the online used-car retailer have climbed 51.7% over the past 52 weeks, exceeding XLY’s 11.4% gain over the same time frame.
Yet, the stock has been trading below its 50-day and 200-day moving averages since early February.
Shares of Carvana tumbled nearly 8% following its Q4 2025 results on Feb. 18 as the company missed earnings expectations, reporting adjusted EBITDA of $511 million and EPS of $1.06. The decline came despite strong revenue growth of 58% to $5.6 billion and 163,522 units sold (up 43% year-over-year), as high expenses of about $2.16 billion, driven by inspection, repair, detailing costs, and elevated depreciation, hurt margins.
In comparison, rival Penske Automotive Group, Inc. (PAG) has shown a less pronounced decline than CVNA stock on a YTD basis, with PAG stock falling 11.2%. Nevertheless, PAG stock has dropped 6.3% over the past 52 weeks, lagging behind CVNA stock.
As the stock has outperformed relative to the sector over the past year, analysts remain strongly optimistic about its prospects. CVNA stock has a consensus rating of “Strong Buy” from 23 analysts in coverage, and the mean price target of $444.19 represents a premium of 49.6% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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