Why CARVANA CO (NYSE:CVNA) qualifies as a high growth stock.

A possible breakout setup was detected on CARVANA CO (NYSE:CVNA) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:CVNA.

Deciphering the Technical Picture of NYSE:CVNA

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, CVNA scores 10 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CVNA is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that CVNA is one of the better performing stocks in the market, outperforming 98% of all stocks. On top of that, CVNA also shows a nice and consistent pattern of rising prices.
• CVNA is part of the Specialty Retail industry. There are 120 other stocks in this industry. CVNA outperforms 98% of them.
• CVNA is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month CVNA has a been trading in the 186.46 - 259.54 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of CVNA

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:CVNA currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, CVNA also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 260.43. Right above this resistance zone may be a good entry point. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Looking into the high growth metrics of CARVANA CO

• CARVANA CO has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 239.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• CARVANA CO has achieved significant quarter-to-quarter (Q2Q) revenue growth of 31.81%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• Analysts' average next Quarter EPS Estimate for CARVANA CO has witnessed a 130.0% change in the last 3 months, underscoring the dynamic nature of market sentiment towards the company's EPS prospects.
• In the most recent financial report, CARVANA CO reported a 239.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• accelerating EPS growth for CARVANA CO: the current Q2Q growth of 239.0% exceeds the previous year Q2Q growth of 82.77%.
• The operating margin of CARVANA CO has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• CARVANA CO has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• With a track record of beating EPS estimates 3 times in the last 4 quarters, CARVANA CO showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.
• CARVANA CO has exhibited strong Relative Strength(RS) in recent periods, with a current 98.65 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. CARVANA CO shows promising potential for continued price momentum.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.