Anytime a stock drops more than 90% from its 52-week high, investors may consider it a bounce-back candidate. Prolific investor Michael Burry of The Big Short fame once wrote, "My strategy isn't very complex. I try to buy shares of unpopular companies when they look like road kill and sell them when they've been polished up a bit."

One stock that looks like roadkill right now is Carvana (NYSE: CVNA), which is down 91% over the past year. However, investors looking for a quick turnaround for the online retailer of used cars should tread lightly. Here are three red flags that show Carvana stock is a depreciating asset.

For growth stocks, revenue is arguably one of its most important metrics because it shows whether popularity or usage increases among consumers over time. So even if a company is unprofitable -- which Carvana is -- management can always cut costs or make its business model more efficient to find a path to profitability.

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Source Fool.com