Jim Cramer’s Best Performers List: Top 10 Stocks

6. Carvana Co. (NYSE:CVNA)

Cramer discussed how Carvana Co. (NYSE:CVNA) reduced its debt and called it “getable”.

“Six: When Carvana dropped to single digits last year, I pounded the table, saying that people buy, buy, buy, buy, buy, buy. Love these low prices and generous return policy, having bought a car from them and then sent it back… Carvana was in trouble but then they got big backing from their creditors, allowing them to reduce their debt and the rest is history. The stock’s now up 353% for the year and again, I think it was getable if you’re willing to take some risk.”

Carvana (NYSE:CVNA) operates a prominent e-commerce platform for buying and selling used cars in the United States. The company initially grew at a rapid pace, expanding into new markets and increasing its customer base. However, this rapid expansion came with significant financial challenges, as it burned through large amounts of cash while scaling its operations. This resulted in the company accumulating substantial debt.

In an effort to address its financial difficulties, the company entered into a debt exchange agreement with its bondholders last year. As part of this restructuring, the new notes were fully secured by the company’s assets, providing a more stable financial foundation.

Despite these efforts, Carvana (NYSE:CVNA) continues to face a considerable debt load. As of the third quarter of 2024, the company reported total liabilities of $7.08 billion. However, the company’s financial position showed signs of improvement in its latest quarterly results. The company reported a net income of $148 million for the third quarter, with diluted EPS of $0.64, meeting analysts’ expectations. Total revenue for the quarter reached $3.655 billion, marking an impressive 32% increase compared to the same period the previous year.