Carvana Co. (NYSE: CVNA) is one of the best-performing retail stocks in 2024, up more than 230% as markets closed on September 24, 2024. This continues a run that started in late 2023 that has sent the stock up by more than 317%. The company is known for its "vending machine" approach to car buying that has been disruptive to the traditional used car buying process.
In the last two quarters, the company has returned to growth, albeit with unit sales growing more than revenue. This suggests that consumer demand remains strong, albeit perhaps at lower price points.
So, if lower interest rates bring down interest rates as expected, then the sky's the limit for CVNA stock, right? That's what the conventional wisdom may say, but analysts aren't so sure, with some believing that all the growth in CVNA stock is already priced in.
The Carvana analyst forecasts on MarketBeat have a consensus price target of $153.88, which would be a 10.4% pullback for the stock. However, in September, three analysts reiterated or increased their price targets for CVNA stock at levels far above the consensus price, with the highest coming in at $200.
Lower Interest Rates May Stimulate Pent-Up Demand
Used car prices have come down, but they can't go low ...
