5 Best Auto and Truck Dealership Stocks to Buy

4. Carvana Co. (NYSE:CVNA)

Number of Hedge Fund Holders: 36

Carvana Co. (NYSE:CVNA) is an American auto dealership company that operates an e-commerce platform for buying and selling used cars. As of April 28, the stock has returned 49.89% to investors on a year-to-date basis. Carvana Co. (NYSE:CVNA) is one of the best auto and truck dealership stocks to buy now, according to hedge funds.

Over the past 3 months, Carvana Co. (NYSE:CVNA) has received 2 Buy ratings and 13 Hold ratings from Wall Street analysts. The stock has an average price target of $10.27, which implies an upside of 47.98% from current levels.

Carvana Co. (NYSE:CVNA) was a part of 36 hedge funds’ portfolios at the close of the fourth quarter of 2022. These funds held positions worth $209 million in the company. As of December 31, Spruce House Investment Management is the most prominent investor in the company and holds a position worth $47 million.

ClearBridge Investments made the following comment about Carvana Co. (NYSE:CVNA) in its Q4 2022 investor letter:

“We exited our position in online automotive retailer Carvana Co. (NYSE:CVNA), in the consumer discretionary sector. After being one of the portfolio’s top performers over the last few years, Carvana has struggled due to a cyclical downtrend in used car volumes and prices as well as investor concern about the company’s ability to fund future growth. We felt the combination of growing macro uncertainty combined with weakening fundamentals justified finally closing the position.”