7 Best Car Stocks To Invest In Now

3. Carvana Co. (NYSE:CVNA)

Number of Hedge Fund Holders: 61

Carvana Co. (NYSE:CVNA) operates an e-commerce platform for the sale and purchase of used cars in the US. It is based in Tempe, Arizona.

Carvana Co. (NYSE:CVNA) has been known to be a volatile investment; however, recent performance and developments highlight the fact that the company is continuing its growth trajectory. Between 2014 and 2024, Carvana Co. (NYSE:CVNA) has managed to grow its Gross Profit per Unit from $388 to over $7,000. Part of the reason for this may be the company’s recent focus on increasing profitable sales while pulling back on retail sales growth.

Another reason for Carvana Co.’s (NYSE:CVNA) growth and positive performance is that the company is actively working on cutting costs. In 2024, the company managed to cut over $1.1 billion of its annualized Selling, General, and Administrative expenses, and it also successfully restructured its debt to save about $430 million in annual interest expense. Through this, Carvana Co. (NYSE:CVNA) has managed to improve its liquidity, and with net income for the second quarter coming in at $49 million, investors feel more reassured about buying the stock right now.

A total of 61 hedge funds were long Carvana Co. (NYSE:CVNA) in the second quarter, with a total stake value of $5.1 billion.