Why Carvana Co. (CVNA) Is Skyrocketing

We recently compiled a list of the 10 Firms Shine Amid Wall Street’s Lackluster Trading. In this article, we are going to take a look at where Carvana Co. (NYSE:CVNA) stands against the other stocks.

A lackluster trading persisted throughout Thursday, with Wall Street’s main indices ending the day with only marginal changes.

The Dow Jones Industrial Average dipped by 0.16 percent, while the S&P 500 shed 0.21 percent, and the Nasdaq Composite declined by 0.89 percent.

Meanwhile, 10 companies bucked an overall dull trading, having posted impressive gains. Let’s take a closer look at the top performers and explore the factors driving their exceptional results.

To come up with Thursday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A customer buying a used car with the help of a finance specialist.

Carvana Co. (NYSE:CVNA)

Used car retailer Carvana Co. (NYSE:CVNA) resumed a four-day winning streak on Thursday, adding another 8.35 percent to its share prices to close at $231.92 each after gaining an upgraded outlook from Zack Research.

On Thursday, Zack Research said it upgraded Carvana to Zacks Rank #2, indicating a “buy” rating, with the upgrade based on an upward trend in the company’s earnings estimates.

“This company is expected to earn $1.25 per share for the fiscal year ending December 2024, which represents a year-over-year change of 66.7 percent. Analysts have been steadily raising their estimates for Carvana. Over the past three months, the Zacks Consensus Estimate for the company has increased 26.4 percent,” the investment research firm noted.

According to Zacks, Carvana’s (NYSE:CVNA) rating upgrade positions itself in the top 20 Zacks-covered stocks in terms of estimate revisions, implying that it might move higher in the near term.

Overall CVNA ranks 5th on our list of the stocks that skyrocketed today. While we acknowledge the potential of CVNA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CVNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.