#7 - Carvana (NYSE:CVNA)
The last stock on this list is Carvana (NYSE:CVNA) which addresses the shortage in new cars. As consumers look to unleash their pent-up demand many are turning their eyes to a brand new car. The problem is that the global shortage of semiconductor chips is disrupting the supply chain.
That means that more consumers are turning to buy used cars. As has been written at length, the pandemic is changing entrenched habits. Increasingly consumers are becoming comfortable buying big-ticket items such as homes and cars online.
CVNA stock is up 159% in the last 12 months. However, the stock is up just about 4% in 2021. That has some investors wondering if they missed the run. The question is why. And the answer seems to be interest rates. If that’s the case, it’s not hard to see the stock moving up higher.
Carvana is not a stock for the faint of heart. It’s still not a profitable company. However, with earnings beginning to improve, it may be worth a place in your portfolio.
About Carvana
Carvana Co, together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices.
Read More - Current Price
- $259.31
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 11 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $217.71 (16.0% Downside)
The reopening of the economy is happening quickly. The rise in vaccinations is helping to prevent the community spread of the novel coronavirus. More importantly, both hospitalizations and fatalities from Covid-19 are dropping. With that good news, Americans are doing what they do. Whether that’s shopping or attending live events, the net result will be good for the economy.
As you can see in this presentation, there are many sectors that are affected by supply chain disruptions. And if you’ve been to the grocery store, I’m sure you can add others to the list. One of my amusing ones is replacement charcoal filters for my coffee maker. Really? Yep, there’s not one to be found at my local grocery store.
But when you’re aware of these shortages, you easily understand the opportunity that’s right in front of your eyes. And nimble investors will use that realization to invest in the companies that stand to benefit from strong demand.
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