Carvana vs AutoZone
Carvana and AutoZone are compared on this page to explore how their business models, financial performance, and market context relate. The aim is to provide a clear, neutral overview that supports understanding of industry context. Educational content, not financial advice.
Carvana and AutoZone are compared on this page to explore how their business models, financial performance, and market context relate. The aim is to provide a clear, neutral overview that supports und...
Why It's Moving
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.
AutoZone Dips on Q1 Earnings Miss, but Analysts See Buying Opportunity in Resilient Growth
- Net sales rose 8.2% to $4.63B, driven by 4.8% U.S. comp sales growth and 11.2% internationally, outpacing many retailers despite slightly missing revenue forecasts.[1][2]
- EPS of $31.04 trailed $32.40 consensus due to a non-cash inventory charge and investments in stores/supply chain, pressuring gross margins down 2 points.[2]
- No analyst downgrades post-earnings; consensus points to ~30% upside, with institutions poised to buy the dip at key support levels.[1]
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.
AutoZone Dips on Q1 Earnings Miss, but Analysts See Buying Opportunity in Resilient Growth
- Net sales rose 8.2% to $4.63B, driven by 4.8% U.S. comp sales growth and 11.2% internationally, outpacing many retailers despite slightly missing revenue forecasts.[1][2]
- EPS of $31.04 trailed $32.40 consensus due to a non-cash inventory charge and investments in stores/supply chain, pressuring gross margins down 2 points.[2]
- No analyst downgrades post-earnings; consensus points to ~30% upside, with institutions poised to buy the dip at key support levels.[1]
Which Baskets Do They Appear In?
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Explore BasketWhich Baskets Do They Appear In?
Auto Retail Digital Shift: Market Overview 2025
Hertz is partnering with Amazon to sell its used cars online, a move that is shaking up the used-car market. This collaboration highlights the growing trend of digital transformation in automotive sales, creating opportunities for companies that facilitate online vehicle transactions.
Published: August 21, 2025
Explore BasketInformation Asymmetry Arbitrageurs
These companies build their success on knowing more than their customers. Our analysts have selected businesses that create lasting value from proprietary data and analytical advantages in complex markets like credit scoring, auto sales, and insurance.
Published: June 17, 2025
Explore BasketBattleground Stocks
Dive into the market's most controversial companies, where passionate bulls and determined bears wage fierce battles over valuation and future prospects. These handpicked stocks represent high-stakes bets on disruptive technologies and business models that could deliver significant returns if the optimists prove right.
Published: June 17, 2025
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Explore BasketInvestment Analysis
Carvana
CVNA
Pros
- Carvana has demonstrated strong revenue growth, achieving a 55% increase to $5.65 billion in Q3 2025, surpassing analyst expectations.
- The company improved profitability metrics, with adjusted EBITDA rising 45% and GAAP net income increasing 78% year-over-year.
- Carvana benefits from a high current ratio of 4.1, indicating strong liquidity and the ability to meet short-term liabilities efficiently.
Considerations
- Carvana’s stock remains highly volatile, with frequent large price swings reflecting market uncertainty about its business outlook.
- Despite recent gains, the company holds a relatively aggressive leverage ratio of 4.3, which may pose financial risk amid economic challenges.
- The company’s P/E ratio above 75 suggests the stock is priced for high growth, presenting potential valuation risk relative to earnings.
AutoZone
AZO
Pros
- AutoZone has a strong market position as one of the leading automotive aftermarket retailers in the United States with a widespread store network.
- The company exhibits consistent profitability with solid cash flows, supporting steady dividend payments and reinvestment capabilities.
- AutoZone benefits from stable demand driven by the non-cyclical nature of auto parts and maintenance services.
Considerations
- AutoZone faces exposure to macroeconomic risks such as changes in consumer spending and vehicle age trends that can impact parts demand.
- Increasing competition from e-commerce and other retailers could pressure market share and margins over time.
- The company’s large footprint entails significant fixed costs, which may limit flexibility to rapidly adapt to market disruptions.
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