10 Best Stocks to Buy for the Next 5 Years

2. Carvana Co. (NYSE:CVNA)

EPS Forward Long Term Growth (3-5 Year CAGR): 56.98%

Number of Hedge Fund Holders: 109

Carvana Co. (NYSE:CVNA) is one of the best stocks to buy for the next 5 years. On December 12, Citi raised the firm’s price target on Carvana to $550 from $445, while keeping a Buy rating on the shares. The firm posted this sentiment as Carvana’s sales tracker revealed that November growth reached 37%, which was a notable increase from October’s 32%. Believing that the company is benefiting from a clear upward trend in demand, the firm also revised its EBITDA estimates higher.

A day before, on December 11, Jefferies analyst John Colantuoni raised the price target on Carvana to $550 from $475 with a Buy rating on the shares. This decision was made as Piper Sandler recommended a highly selective approach to internet stocks for the coming year. The firm cautioned that heavy incremental investments in new technologies may compress profit margins, while growing concerns over AI disintermediation could prevent stock multiples from expanding. This cautious stance suggests that while the sector remains a focus, the transition from infrastructure to application in 2026 will create significant valuation hurdles for companies unable to prove their long-term defensibility.

Furthermore, Morgan Stanley analyst Andrew Percoco assumed coverage of Carvana on December 8 with an Overweight rating and $450 price target. Following a recent change in analysts, Morgan Stanley updated its 2026 outlook for the automotive and shared mobility sector with a more defensive tone. The firm warned that the EV winter is set to endure through 2026, leading to a more cautious stance on pure-play EV manufacturers. To balance this, the firm expressed a moderately positive view on companies focusing on internal combustion engines and hybrids.

Carvana Co. (NYSE:CVNA), together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the US.