Should you consider CARVANA CO (NYSE:CVNA) for growth investing?

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if CARVANA CO (NYSE:CVNA) is suited for growth investing. Investors should of course do their own research, but we spotted CARVANA CO showing up in our Louis Navellier growth screen, so it may be worth spending some more time on it.

Key Considerations for Growth Investors.

• CVNA showcases a robust Return on Equity (ROE) of 16.67%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• CVNA has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
• With notable 1-year revenue growth of 26.94%, CVNA exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• The q2q revenue growth of 46.33% of CVNA highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• CVNA has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• With positive growth in its free cash flow (FCF) over the past year, CVNA showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• CVNA has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 156.0% increase. This indicates improving financial performance and the company's effective management of its operations.
• The average next Quarter EPS Estimate for CVNA has experienced a 13.92% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• The 1-year EPS growth of CVNA (%EPSYGROWTHTTM%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• The earnings per share (EPS) growth of CVNA is accelerating: the current Q2Q growth of 156.0% is above the previous year Q2Q growth of -356.0%. Earnings momentum and acceleration are key for high growth systems.

How does the complete fundamental picture look for CVNA?

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to CVNA. CVNA was compared to 122 industry peers in the Specialty Retail industry. CVNA has an average financial health and profitability rating. CVNA is valued quite expensive, but it does show an excellent growth.

Check the latest full fundamental report of CVNA for a complete fundamental analysis.

More growth stocks can be found in our Lois Navellier screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.