As Carvana Pulls Up to S&P 500, We're Mapping a New Price Target
Here's how to handle the stock as the automotive play hit a new high on Monday. Also, two other names to be added to the S&P.
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Carvana (CVNA) shares jumped 12% on Monday to reach an all-time closing high of $447. The move came days after it was revealed the online automotive sales platform will become a component of the S&P 500 on Dec. 22.
The news caps a wild year for Carvana, which has seen its shares climb 124% in 2025. Monday saw Carvana trade 14 million shares, the highest turnover of the year. Investment funds and exchange-traded funds that mirror the S&P 500 will now need to add shares of the Tempe, Arizona-based company, which could result in further gains for the stock.
More Upside Ahead for Carvana?
Investors are wondering if Carvana still has upside. According to the charts, the answer is yes.
First, we’ll view the daily chart.
Carvana has broken above an area of resistance that has capped the stock since August (shaded yellow). The stock gapped higher and held the majority of its gains despite Monday’s decline in the major indexes.
Carvana is trading well above its 50-day (blue) and 200-day (red) moving averages, and has now gained ground in 10 consecutive sessions.
Our New Price Target for Carvana
The bigger picture, as viewed on Carvana’s weekly chart, gives us clues as to where the stock is headed next.
Carvana has formed an A-B-C-D pattern (black lines). That bullish pattern projects Carvana to the $530 area, which is our new price target for the stock.
Here’s Our Strategy for Trading Carvana
On the weekly chart, the sweet spot for buying Carvana is the top of the yellow shaded area, near $415 (green). Our stop is located below the breakout point, at $385 (red), representing a potential loss of $30 per share.
Our targets are located at $475 and $530 (blue), representing potential gains of $60 and $115 per share. We will close half of our position at each target. If the first target is hit, the stop will be moved to breakeven ($415). If at any point the stock drops below $385, the trade will be terminated.
Comfort Systems, CRH Also Added to the S&P 500
Comfort Systems, USA (FIX) will also be added to the S&P 500 index on Dec. 22, and so will CRH (CRH) . Comfort Systems, which was recently added to the TheStreet Pro Portfolio as part of the EPS Diplomats basket, provides electrical, plumbing, and mechanical services for buildings, while CRH, formerly known as Cement Roadside Holdings, is a major global building materials provider.
The three companies will replace Mohawk Industries (MHK) , Solstice Advanced Materials (SOLS), and LKQ Corporation (LKQ) in the S&P 500.
At the time of publication, Ponsi had no position in any security mentioned.
