5 Best Retail Stocks with Huge Upside Potential

4. Carvana Co. (NYSE:CVNA)

Carvana Co. (NYSE:CVNA) is one of the 10 best retail stocks with huge upside potential.

On March 2, Needham added Carvana Co. (NYSE:CVNA) to its Conviction List, replacing Aurora Innovation (AUR). The firm maintained its Buy rating on the stock, with a $500 target price, resulting in an upside of more than 58%.

Needham notes that retail growth is the key driver of the investment story, with the company still early in its growth path. The firm has identified that “short-term headwinds” are impacting the company disproportionately in terms of investor sentiment and valuation. The adjusted EBITDA per unit is unlikely to decline further due to the company’s increasing focus, which resolves this near-term issue.

Back on February 20, Citi analyst Ronald Josey lowered the firm’s price target on Carvana Co. (NYSE:CVNA) from $550 to $465. The analyst maintained his Buy rating on the stock, resulting in a revised upside potential of 47% at the prevailing level.

Josey attributed this downward revision in price target to greater market volatility, following the company’s fourth-quarter announcement. The analyst recommends buying the stock on potential weakness.

Carvana Co. (NYSE:CVNA) operates an e-commerce platform that facilitates the purchase and sale of used cars. The company leverages a vertically integrated model that incorporates sales, inspection, and reconditioning centers, logistics fleet, and vending machines. It also offers other solutions, including financing, complementary products, and post-sale support.