Carvana (CVNA) Gains Outperform Rating on 40% Growth Potential

Carvana Co. (NYSE:CVNA) ranks among the best rebound stocks to buy right now. On March 13, William Blair reaffirmed its Outperform rating on Carvana Co. (NYSE:CVNA) following the company’s announcement of a planned stock split. Carvana revealed plans for a 5-for-1 stock split, contingent on shareholder approval at its annual meeting on May 5.

The shift is intended to enable tenured full-time team members to accrue stock over years of service, with the company also offering a subsidized Employee Stock Purchase Plan. If authorized, the split will take effect on May 6, following the closing for class A and class B stockholders of record on that date.

William Blair added that Carvana Co. (NYSE:CVNA) expects a compound annual growth rate of 20% to 40% in retail units sold over the coming 4 to 10 years. The firm noted that despite momentarily higher restoration costs, Carvana Co. (NYSE:CVNA) remains the most lucrative operator in the sector.

Carvana Co. (NYSE:CVNA) is an online retailer of used cars based in Tempe, Arizona. Renowned for its multi-story automobile vending machines, the firm is the fastest-growing online used car dealer in the United States.

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