In the past 30 days, 13 analysts have increased their EPS estimates for this auto reseller, and are predicting 37.10% next year.
Carvana Co. (CVNA)
From The Chartist
On the negative side, price earning’s multiples are through the roof and valuation levels are near historic highs. As an example, the Buffet Indicator recently hit the highest overvalued level in its history suggesting that the benchmark S&P 500 will lose 1% per year over the next eight years.
Since the March 25th lows, the market as measured by the S&P 500 has soared over 50%. This dramatic rise in share prices has come in the face of an economy that contracted by a third between April and June.
It is no wonder why many stock market participants feel that we are in a bubble and that the bull market is living on borrowed time. The American Association of Individual Investors in their latest weekly poll shows bears outnumbering bulls 42% to 30%. It is interesting to note that the bullish contingent has not been above 35% since the middle of April and was as low as 20% only two weeks ago. From a contrary opinion standpoint, this is a very healthy sign that the bull market has further to run.
Carvana Co. is an e-commerce platform for buying used cars. Consumers can research and identify a vehicle, inspect it using its proprietary 360-degree vehicle imaging technology, obtain financing and warranty coverage, purchase the vehicle and schedule delivery or pick-up, all from their desktop or mobile devices.
The company’s transaction technologies and online platform transform a traditionally time-consuming process by allowing customers to secure financing, complete a purchase, and schedule delivery online.
Mental stop: $172.93
Dan Sullivan, The Chartist, thechartist.com, 900-942-4278, August 20, 2020