5 Best Used Car Stocks To Buy Now

4. Cazoo Group Ltd (NYSE:CZOO) 

Number of Hedge Fund Holders: 29

Cazoo Group Ltd (NYSE:CZOO) is a London-based online used car retailer in the United Kingdom and rest of Europe. On August 2, Cazoo Group Ltd (NYSE:CZOO) stock shot over 180% after posting record revenues for the second quarter. Cazoo Group Ltd (NYSE:CZOO) reported a 144.9% increase in revenue from the earlier year to £333 million, supported by a 124% boost in vehicles sold. Gross profit per unit lifted to £309 from £185 in the previous quarter. Cazoo Group Ltd (NYSE:CZOO) is one of the best used car stocks to invest in. 

On August 10, Berenberg analyst Saim Saeed double upgraded Cazoo Group Ltd (NYSE:CZOO) to Buy from Sell with a price target of $2.33, up from $0.49. When reporting first half results, the management demonstrated a “significant pivot in strategy” by posting an overview of its European operations, which will likely lead to a full exit, the analyst told investors. Such a move would eliminate Cazoo Group Ltd (NYSE:CZOO)’s financing gap, allow it to better support the U.K. business, and ultimately return a higher value to shareholders, said the analyst. He believes the shares “do not reflect the value of this move” and said this “key positive catalyst” is playing out sooner than forecasted.

According to Insider Monkey’s Q2 data, 29 hedge funds were bullish on Cazoo Group Ltd (NYSE:CZOO), compared to 34 funds in the prior quarter. Daniel Sundheim’s D1 Capital Partners is the biggest stakeholder of the company, with 36.8 million shares worth $26.5 million.