Carvana (CVNA) Stock Is Up 52% Over The Past Month: What's Going On?

Carvana Co CVNA shares are trading higher by 6.6% to $311.64 Wednesday afternoon, extending a sharp rally that has lifted the stock 52% over the past month.

The surge follows a strong first-quarter earnings report released last week, in which the online used car retailer posted record-setting results and raised its full-year outlook.

What To Know: For the first-quarter, Carvana reported revenue of $4.23 billion and adjusted EBITDA of $488 million, both ahead of Wall Street estimates. Retail unit sales soared 46% year-over-year to a record 133,898 vehicles, surpassing expectations and driving profitability to new highs.

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Analysts responded favorably. BofA Securities reiterated a Buy rating and lifted its price target to $295, citing strong operational efficiency and expanding financing margins. Wells Fargo and Baird also raised their targets to $310 and $275, respectively, while Needham maintained a $340 target.

Looking ahead, Carvana projects further sequential gains in the second-quarter, expecting 138,000 units sold and $536 million in adjusted EBITDA. Management also reaffirmed its long-term goal of selling 3 million units annually at a 13.5% EBITDA margin.

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How To Buy CVNA Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Carvana’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, CVNA has a 52-week high of $311.88 and a 52-week low of $97.55.

Image courtesy of Carvana