CarvanaCummins

Carvana vs Cummins

Carvana Co. and Cummins Inc. are compared to illuminate their business models, financial performance, and market context. This page presents neutral, accessible explanations of how each company create...

Why It's Moving

Carvana

Carvana hits all-time highs on 12-day winning streak ahead of S&P 500 inclusion.

  • Upcoming S&P 500 addition guarantees passive inflows, boosting visibility and liquidity for the online used-car retailer.
  • Record Q3 2025 results with 55% revenue growth to $5.65 billion and 44% retail unit increase to 156,000 vehicles signal sustained profitability.
  • Stronger securitization pipeline enhances financing profits, positioning Carvana as a data-driven auto finance powerhouse beyond just vehicle sales.
Sentiment:
🐃Bullish
Cummins

Cummins (CMI) surges to new 52-week high on momentum and analyst upgrades.

  • Achieved 52-week high of $515.83 on December 8, fueled by upward earnings estimate revisions and Momentum Style Score of A, with shares up 15.6% in recent weeks.[1][6]
  • Analysts maintain 'Moderate Buy' consensus with average target around $479, reflecting optimism despite sector headwinds.[1][5]
  • Recent quarterly dividend of $2.00 per share paid December 4 supports yield of 1.6%, attracting income-focused investors amid stock strength.[1]
Sentiment:
🐃Bullish

Which Baskets Do They Appear In?

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Investment Analysis

Carvana

Pros

  • Carvana operates the largest online used car retail platform in the US, leveraging technology for a differentiated customer experience and market share gains.
  • The company has demonstrated impressive revenue growth with ambitions of a long-term CAGR of 18-19% through 2032, reflecting strong growth potential.
  • Analyst consensus shows moderate buy ratings with an upside potential around 20%, supported by Carvana’s evolving operational efficiency and market position.

Considerations

  • Carvana’s valuation metrics are notably high, with a P/E ratio above 75 and price-to-book ratio over 40, indicating potentially elevated market expectations and risk.
  • The company faces macroeconomic headwinds and execution risks linked to high debt levels and the volatility of the used car market demand.
  • Carvana’s stock price shows significant volatility, with some forecasts predicting considerable short-term declines, especially in early 2026 and beyond.
Cummins

Pros

  • Cummins is a well-established global leader in engines and power generation products with a strong market position across diverse industries.
  • The company benefits from steady demand driven by infrastructure development, electrification trends, and emissions regulations boosting product upgrades.
  • Cummins maintains a solid balance sheet and has shown consistent profitability supported by operational efficiency and ongoing investments in innovation.

Considerations

  • Cummins is exposed to cyclicality in industrial and automotive sectors, which can pressure earnings during economic downturns.
  • Transition to electrification presents execution risk and competitive challenges as Cummins adapts its product portfolio for emerging clean technologies.
  • Raw material costs and supply chain disruptions pose ongoing margin pressure and potential impacts on production and delivery schedules.

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