Why Carvana Co. (CVNA) Skyrocketed On Tuesday?

We recently published a list of 10 Firms End Stronger on Tuesday. In this article, we are going to take a look at where Carvana Co. (NYSE:CVNA) stands against other firms that end stronger on Tuesday.

A muted trading persisted on the stock market on Tuesday, with major indices ending in the red, recording minimal losses while digesting President Donald Trump’s tariff policies.

The Dow Jones declined by 0.38 percent, the S&P 500 dipped by 0.17 percent, while the tech-heavy Nasdaq dipped by 0.05 percent.

Ten companies bucked a broader market pessimism, booking modest gains during the session. In this article, we have identified the reasons behind their gains.

To come up with the list, we only considered the stocks with $2 billion market capitalization and $5 million trading volume.

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

Carvana Co. (NYSE:CVNA)

Shares of Carvana grew by 4.44 percent on Tuesday to close at $213.81 apiece as investor sentiment was fueled by an investment firm’s rating adjustment for the company.

In a market report on Monday, JMP Securities reduced its price target for CVNA to $275 from $340 previously but gave the company a Buy rating on the shares. The new price target represented a 28.6-percent upside from the company’s closing price on Tuesday.

According to JMP, its rating adjustment was based on CVNA’s bright business prospects, particularly stronger revenues and improved operating efficiency.

In recent news, CVNA announced plans to build a new mega-site in Arizona and generate as many as 200 jobs.

“The Phoenix area is home to our headquarters and a significant anchor for Carvana and ADESA operations, so we couldn’t be more excited to expand our local capabilities and team here,” said CVNA Senior Vice President for Inventory Brian Boyd. ”Bringing Carvana Inspection and Reconditioning Center capabilities to ADESA Phoenix will drive additional speed and selection for our local retail customers and an even more robust offering for our local wholesale customers while also creating new entry-level and skilled jobs in the Chandler community.”

Overall, CVNA ranks 10th on our list of firms that end stronger on Tuesday. 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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