Is Carvana Stock a Buy, Hold or Sell After Earnings Rally?
Carvana stock jumped Thursday after the used car retailer posted a surprise Q2 profit and Wall Street has been quick to chime in. Here's what they're saying.


Carvana (CVNA) stock popped more than 10% Thursday after the used car retailer reported a surprise profit for its second quarter and topped revenue expectations.
In the three months ended June 30, Carvana's revenue increased 14.9% year-over-year to $3.4 billion, driven by a 32.5% year-over-year increase in retail units sold to 101,400. Its earnings per share swung to 14 cents from a per-share loss of 55 cents in the year-ago period.
"Carvana's second quarter results clearly demonstrate the differentiated strength of our customer offering and business model," said Carvana CEO Ernie Garcia in a statement. In addition to leading the industry in retail unit growth, CVNA's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin set "an all-time high water mark for public automotive retailers," he added.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily easily analysts' expectations. Wall Street was anticipating revenue of $3.2 billion and a loss of 7 cents per share, according to CNBC.
For the rest of the year, Carvana said it anticipates "a sequential increase in retail units in Q3 compared to Q2" and "adjusted EBITDA of $1.0 to $1.2 billion for the full year 2024, an increase from $339 million last year."
Is Carvana stock a buy, sell or hold?
It wasn't even two years ago that Carvana appeared to be on the brink of bankruptcy. But in 2024, the consumer discretionary stock has been one of the best performers on the price charts, up more than 200%.
Analysts have had a tough time keeping up with CVNA's quick ascent. According to S&P Global Market Intelligence, the average analyst target price for CVNA stock is $125, which is about 20% below current levels. Additionally, the consensus recommendation is Hold.
Still, there are some on Wall Street that have taken note of the sizzling stock. Financial services firm Needham has a Buy rating on Carvana and lifted its price target on the stock to $200 from $160 after earnings.
"CVNA is proving out the original bull thesis on the stock, with their unique industry positioning and physical and technology moats set to drive a long runway of share gains, while leveraging improved internal processes to drive industry leading gross profits per unit," Needham analyst Chris Pierce said in a note this morning. "The next leg of CVNA's growth is profitable unit growth, with commentary on the path forward in retail GPU also indicative of a stronger tilt towards a unit growth posture."
Needham's $200 price target represents implied upside of nearly 40% to current levels.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Buffered ETFs for a Rocky Market
Buffered ETFs provide protection during market downturns, but in exchange, your gains are capped.
-
Time to Spring-Clean Your Finances: A Financial Professional's Four Steps to Tidy Them Up
A midyear review of everything from spending to saving, with adjustments as needed, can set you on track to financial security. Plus, don't forget to check in on your workplace benefits.
-
Why a Law Firm Secretly Recording Client Conversations Is Wrong (and Illegal)
A law firm that has been recording client conversations without the clients' knowledge or permission and has threatened employees if they speak out faces legal and ethical challenges.
-
Stock Market Today: Markets Discount Another U.S. Downgrade
After Friday's closing bell, Moody's followed Standard & Poor's and Fitch and cut its rating on U.S. government debt.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
What's Next for Stocks After a Chaotic Spring
A chaotic tariff policy buffets investors looking for clarity on the economy and inflation.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? Wrong
The wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term Care
Many people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.