In a fresh bullish call on Carvana (CVNA), Wedbush Securities is telling investors to “take advantage” of the recent pullback. The firm upgraded CVNA from “Neutral” to “Outperform” and boosted its 12-month price target to $400. Analyst Scott Devitt says the latest selloff—sparked by soft CarMax (KMX) earnings and broad credit-market worries—has pushed Carvana’s valuation to the lower end of its two-year range.

With several quarters of strong growth under its belt, Wedbush now believes CVNA could pass CarMax in used-car unit volume sooner than expected, hit 3 million annual retail sales by 2033, and expand adjusted EBITDA margins to 12% by 2027.

Carvana’s latest quarter delivered record revenue and a 44% jump in vehicle sales—yet margin pressure briefly dragged the stock lower. So the real question now is: Is this former meme stock gearing up for another big run? And more importantly, is this a real “buy-the-dip” moment?

About Carvana Stock

Carvana is a fully online used-car retailer headquartered in Tempe, Arizona. The company lets customers browse, finance, purchase, trade in, and schedule pickup or delivery through its website or app—no traditional dealership required.

Since its founding in 2012, Carvana has reshaped the used-car market with its automated car “vending machines,” 360° virtual tours, and a tightly integrated logistics and inspection network. Today, the company boasts a massive market capitalization of $86.7 billion.

A Roller-Coaster Year for CVNA

2025 has been nothing short of wild for Carvana. After hitting a 52-week high of $413.33 in late July, the stock has cooled—now trading about 4% below that peak, but still comfortably above the 52-week low of $148.25.

For investors who got in early this year, the ride has been rewarding. Carvana has staged a remarkable comeback, backed by renewed confidence in its online-first model.

A big chunk of the recent volatility stems from broader concerns in the used-car and auto-credit markets. Investors initially applauded Carvana’s record sales and improved operations, but worries over profit margins, rising auto-loan delinquencies, and cautious guidance sparked profit-taking after earnings.

Even so, CVNA remains up 53% over the past year and 96% year-to-date.

And while CVNA still carries the reputation of a former “meme stock”—famous for its massive sentiment-driven spikes and just-as-painful crashes—it now appears to be settling into a more mature, execution-focused phase. Even so, that streak of unpredictability still adds to its intrigue.

Carvana shares currently trade at a premium: 78x earnings, well above peers.

Record Topline Performance

For the quarter ending Sept. 30, Carvana delivered some of its strongest results ever:

• 155,941 retail units sold, up 44% YOY
• $5.6 billion in revenue, up 55% YOY
• Net income: $263 million (4.7% margin)
• Adjusted EBITDA: $637 million (11.3% margin)

These numbers all mark record results—and Carvana has now surpassed a $20 billion revenue run-rate.

Operational improvements played a major role. The company expanded reconditioning capacity and logistics throughput, helping it support the surge in deliveries. On the customer side, Carvana is doubling down on convenience, including expanding same-day and next-day delivery in markets like Phoenix.

But not everything was perfect: adjusted EBITDA margin slipped from 11.7% to 11.3%, and EPS of $1.03 fell short of analyst expectations. That earnings miss triggered a 14% slide in shares on Oct. 30.

For Q4, management expects retail unit sales to remain above 150,000. For full-year 2025, the company reaffirmed adjusted EBITDA at or above the high end of its $2 billion–$2.2 billion outlook.

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Analysts see strong earnings momentum ahead, forecasting:

• EPS of $4.85 for 2025 (up 375% YOY)
• EPS of $7.39 for 2026, another 52% jump

What Wall Street Thinks About Carvana

Analysts are leaning bullish.

Jefferies reiterated a “Buy” rating and a $475 price target, citing persistent retail unit growth. If that momentum continues into the holiday season, Jefferies says Q4 retail unit growth could hit 42%.

Citizens also stuck with a “Market Outperform” rating and a $460 target after visiting Carvana’s reconditioning center in Haines City, Florida. The firm highlighted Carvana’s improving profitability, faster turn times, and scale advantages—especially same-day delivery—as long-term competitive strengths.

Wall Street’s consensus rating: Strong Buy

• 15 analysts: Strong Buy
• 3 analysts: Moderate Buy
• 5 analysts: Hold

The average price target is $427.71, suggesting 7% upside, with the most bullish forecast at $500—a possible 25% rally from current levels.