Carvana Has Now Reported 2 Profitable Quarters. Time to Buy?
Carvana (NYSE: CVNA) has accomplished the unthinkable. The company sought to remake the fragmented used-car market by transacting and financing online. It then completes the transaction at a customer's home or by pick-up and delivery points, some of which are called "car vending machines." This reduces the high overhead costs of operating dealerships like its competitor CarMax.
After staring at the brink of bankruptcy, a debt restructuring deal rescued the stock. The company has now reported an earnings before interest, taxes, depreciation, and amortization (EBITDA) profit and positive net income for each of the first two quarters in 2024.
Thanks to that recovery, the retail stock is up more than 2,900% since the beginning of 2023. But does this recovery mean it's safe for investors to buy?
Source Fool.com
Carvana Co. Stock
Currently there is a rather positive sentiment for Carvana Co. with 10 Buy predictions and 7 Sell predictions.
As a result the target price of 139 € shows a slightly positive potential of 11.66% compared to the current price of 124.48 € for Carvana Co..
