Carvana Co. (CVNA) surged in Thursday’s session, extending its recent bullish momentum with a double‑digit advance. The stock jumped 12.22% on the day, gaining $48.85 to close at $448.62, well above the prior close of $399.77. Trading action was robust, with 6,885,139 shares changing hands, more than double the 90‑day average volume of 3,068,494. This elevated activity underscores strong buying interest as the stock continues advancing on the NYSE.
The latest move also pushed Carvana decisively into fresh high‑ground. Shares finished the session above their prior 52‑week high of $413.34 set on July 31, 2025, placing the stock more than 8% above that earlier peak. This breakout contrasts with more mixed action among major Consumer Discretionary names, where Amazon.com, Inc. slipped 0.61% over the past week and The Home Depot, Inc. declined 1.20%, while Tesla, Inc. and Industria de Diseño Textil, S.A. posted more moderate weekly gains of 2.65% and 12.32%, respectively. In that context, Carvana’s sharp advance and high‑volume breakout stand out as particularly strong price action, signaling that the stock is gaining ground faster than many large‑cap peers in the sector.
Why Carvana Co. Price is Moving Higher
Carvana Co. (CVNA) is drawing fresh investor enthusiasm after the company was selected for inclusion in the S&P 500 index, effective Dec. 22, 2025. That announcement on Dec. 5 sparked about a 10% pre-market surge as traders positioned ahead of expected index-related demand. Inclusion in a major benchmark typically forces passive funds and ETFs that track the S&P 500 to buy the stock, creating a built-in source of incremental demand. It also tends to increase liquidity and visibility with institutional investors, reinforcing the idea that the company has reached a new level of market significance.
Beyond the mechanical buying from index funds, the S&P 500 upgrade is arriving against a backdrop of strong underlying growth, which helps explain why sentiment is skewing bullish. Carvana’s revenue is expanding at an aggressive 54.5% pace, and the company is generating positive earnings per share of $4.39 with a profit margin of 3.44%. Those metrics suggest the business has moved past its most difficult scaling phase and is now converting growth into profitability, a combination that often attracts momentum-oriented investors. Trading activity has spiked meaningfully above its recent 90-day average, signaling that a wide range of market participants are re-rating the story in real time. In this environment, the S&P 500 inclusion is being treated less as a one-off headline and more as confirmation that Carvana is gaining staying power within the Consumer Discretionary landscape, helping fuel the latest leg higher.
What is the Carvana Co. Rating - Should I Buy?
Weiss Ratings assigns CVNA a C rating. Current recommendation is Hold. That places Carvana squarely in the “middle of the pack” from a risk/reward standpoint, but with several constructive elements supporting its case. The Good Total Return Index and Good Growth Index show that, on balance, the company has been able to expand and reward shareholders better than many average Consumer Discretionary names, even after accounting for the ups and downs in its share price.
One of the key positives behind this C rating is Carvana’s Excellent Solvency Index. That assessment signals a solid balance-sheet position relative to its risk profile, giving the company more flexibility to navigate industry cycles and fund its operations. The Fair Efficiency Index, paired with a profit margin of 3.44% and an eye‑catching 68.15% return on equity, indicates that while Carvana is generating attractive returns for shareholders, it is still working toward more consistent operational efficiency.
Growth-oriented investors will likely focus on Carvana’s 54.50% revenue growth, which feeds directly into the Good Growth Index. However, the very high forward P/E ratio of 91.07 shows the market is already pricing in substantial future progress. This premium valuation helps explain why the overall rating remains at C rather than moving higher, despite the strong top‑line expansion and improving profitability metrics.
Compared to sector peers like Amazon.com, Inc. (AMZN, B) and McDonald’s Corporation (MCD, B), Carvana’s C rating places it below some of the established Consumer Discretionary leaders, but on par with names like Tesla, Inc. (TSLA, C). The Weak Volatility Index indicates that price swings have been pronounced, so while there is opportunity, investors considering CVNA should be comfortable with a bumpier ride and align expectations with a Hold‑level risk/reward profile.
About Carvana Co.
Carvana Co. is a leading e-commerce platform for buying and selling used vehicles in the Consumer Discretionary Distribution and Retail industry. Operating primarily in the United States, the company focuses on simplifying and digitizing the traditional auto retail experience. Through its online platform and mobile app, Carvana enables customers to browse a large inventory of used vehicles, complete financing, arrange trade-ins and finalize purchases entirely online. Vehicles are delivered directly to customers’ homes or picked up from Carvana’s signature multi-story “car vending machines,” which have become a distinctive element of its brand and customer experience.
Carvana’s business model centers on end-to-end vertical integration, including vehicle acquisition, reconditioning, marketing, sales and logistics. The company operates inspection and reconditioning centers designed to standardize vehicle quality before listing cars on its platform. Each vehicle typically comes with a detailed, high-resolution virtual tour and comprehensive condition reporting, supporting a transparent buying process. Carvana also provides features such as a seven-day return window, online loan approvals and digital document processing, which streamline the customer journey and reduce friction compared with traditional dealership visits.
Within the Consumer Discretionary retail landscape, Carvana’s competitive advantages include its fully digital transaction model, nationwide logistics footprint and emphasis on convenience and transparency. By combining proprietary technology, data-driven pricing tools and integrated logistics, the company seeks to offer a differentiated value proposition in the used-vehicle market. This approach has helped position Carvana as a prominent player among automotive e-commerce platforms, serving consumers who prefer an online-first, self-directed shopping experience.
Investor Outlook
With a C Weiss Rating, Carvana Co. sits in “Hold” territory, signaling a balanced but still developing risk/reward profile and potential for continued gains if execution and market conditions remain favorable. Investors may want to watch how consumer discretionary trends, financing conditions and operational efficiency evolve, as improvements in these areas could support a future ratings upgrade. See full rankings of all C-rated Consumer Discretionary stocks inside the Weiss Stock Screener.