10 Most Volatile Stocks To Buy Right Now

3. Carvana (NYSE:CVNA)  

Number of Hedge Fund Investors: 61  

Beta: 3.43

Carvana (NYSE:CVNA) is an innovative online platform that allows customers to buy, sell, and trade used cars. As a digital auto-retailer, Carvana’s (NYSE:CVNA) unique model focuses on customer convenience, transparency, and a hassle-free car-buying experience.

In Q2, Carvana (NYSE:CVNA) reported a gross profit per vehicle of $7,049, a significant improvement from previous quarters. This achievement results from the company’s focus on reducing operational costs, improving its reconditioning processes, and optimizing its vehicle acquisition strategy. The company increased unit sales by 33% year-over-year while reducing operating costs per vehicle by $400 per unit.

Carvana’s (NYSE:CVNA) focus on profitability is starting to pay off, and the company is poised to benefit from economies of scale and digital distribution models that e-commerce. The company’s unique platform allows it to operate nationally, benefiting from immense scale, unique data insights, and minimizing overhead costs, which sets it apart from traditional dealerships that are vulnerable to localized economic conditions.

The company has also revamped its reconditioning processes, which has supported expanding its gross profit margins. Furthermore, management has focused on creating improved processes for acquiring vehicles at auctions, which has supported expanding its gross profit margins. The company’s growth prospects are promising, with analysts projecting revenue to grow from $13.08 billion in 2024 to over $27.5 billion by 2029.

Carvana’s (NYSE:CVNA) growth prospects, combined with its unique platform and improving operations, make it an attractive investment opportunity for those looking to capitalize on the growing demand for online car buying. The company’s stock is owned by 61 hedge funds, with a total value of $5.11 billion as of the second quarter.