Since VectorVest’s Sell Rating for Carvana, the stock has plummeted 79%.
Nobody Analyzes Stocks Like VectorVest.
VectorVest is the only stock analysis and portfolio management system that analyzes, ranks and graphs over 18,000 stocks each day for value, safety and timing. It gives a clear buy, sell, or hold rating on every stock, every day.
VectorVest calculates an exclusive Stop-Price for each stock, every day. It’s your line in the sand for knowing when to sell.
NO HUNCHES, NO OPINIONS.
VectorVest calculates the value of every stock, every day. When price is significantly higher than value, there is an increased likelihood that the stock could crash during a market correction.
In the case with Carvana, VectorVest’s calculated value was $37.29 on 10/4/21. Remember, CVNA closed at $294.07 that day, so it was extremely overvalued. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates.
VectorVest gives you ANSWERS, not just data. What to buy. What to sell. Most importantly, WHEN to buy or sell. Unbiased, independent answers.
Is it time to buy Carvana?
No. We don’t recommend buying stocks that are trending down, because you don’t know how far down is. In this case, the downside risk is still very strong. The stock price continues to fall, the earnings forecast is dropping, and the valuation has fallen to $10.84. Don’t try to catch a falling knife!
So, when would you consider buying? Wait for the stock to reverse course. We want to see the price to stop moving down and begin trending higher. Look at VectorVest’s exclusive Relative Timing (RT) indicator. This measures the price trend of the stock. If it’s above 1.00 the stock is in an uptrend, and below 1.00 it’s in a downtrend. As you can see from the chart below, the RT for Carvana is well below 1.00, indicating CVNA remains in a downtrend.