5 Best Stocks to Buy According to Ari Zweiman’s 683 Capital Partners

4. Carvana Co. (NYSE:CVNA)

683 Capital Partners’ Stake Value: $40,645,000

Percentage of 683 Capital Partners’ 13F Portfolio: 2.87%

Number of Hedge Fund Holders: 47

If you had any reservations about following the consensus stock picks of hedge funds and the benefits of doing so, look no further than what has been happening with Carvana Co. (NYSE:CVNA). The stock might have crashed this year – losing almost 90% of its value year-to-date – but smart money started fleeing from it all the way back in early 2021. Among the hedge funds tracked by Insider Monkey, the number of funds with ownership in Carvana Co. (NYSE:CVNA) had declined consecutively every quarter since the first quarter of 2021, when 64 funds disclosed a stake in the company and stood at 47 at the end of June.

The collapse of Carvana Co.’s (NYSE:CVNA) stock price may have made it   “grossly undervalued”, according to analysts at Piper Sandler. In a recently released note, they upgraded the stock to ‘Overweight’ from ‘Neutral’ while reducing their price target on it to $73 from $98, which still represents a potential upside of 100%. In their note, the analysts mentioned:

“Before we get to the punchline, please note that yes, we are aware that used vehicle prices are falling. We know that rising interest rates are a risk, and we know that bankruptcy is a real possibility. But CVNA is now 1/10th as valuable as it was 12 months ago, and after running a detailed sensitivity analysis, we think many realistic scenarios suggest that CVNA is grossly undervalued.”