Chart of the Day: Carvana Cruises Into the Portfolio
The big used car dealer has tremendous earnings power and is part of the EPS Diplomats basket.
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What a move Carvana (CVNA) has made since being trashed in 2022 and 2023. The stock was left for dead, hovering near $3 a share and possibly looking at a bankruptcy. Troubles were well documented, but the company turned things around and shareholders were emboldened by their recovery plan. As a reward, the stock is up more than 10,000% (not a typo) since then and is embracing new technologies like AI to help sell more used cars.
The chart shows tremendous strength and power in this stock, with higher-highs and higher-lows, which qualify Carvana as being in an uptrend.
The recent move up and then pullback has us encouraged. A bullish cup/handle pattern is seen, which is often the sign of more upside as the stock carves out the right side of the base (handle portion).
Other indicators are mixed, but that is due to the recent pullback from the highs. The stock was well overbought a month ago and due for a rest. Earnings will likely be out later this month, and we hope to then see why the stock belongs in our EPS Diplomats basket (looking for strong earnings).
As a member of the EPS Diplomats, Carvana is not rated in TheStreet Pro Portfolio.
Carvana is a holding in the TheStreet Pro Portfolio.
