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Carvana’s Stock Surges After Wedbush Upgrade and Strong Q3 Results

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 11/28/2025, 4:41 pm ET 11/28/2025, 4:41 pm ET | 5 min 5 min read
Carvana’s Stock Surges After Wedbush Upgrade and Strong Q3 Results Thumbnail

Carvana Co.’s stocks have been trading up by 4.67 percent following robust sales growth boosting investor optimism.

Consumer Discretionary industry expert:

Analyst sentiment – positive

Carvana (CVNA) currently operates from a robust position within the online car retail market. Its profitability ratios, although showing a mixed picture with an ebitmargin of 9.9% and a concerning negative pretax profit margin of -2.5%, indicate operational efficiencies. Revenues stand at an impressive $13.67 billion, contributing to a strong gross margin of 21.4%. However, a high Price-to-Earnings (P/E) ratio of 81.4 suggests the market anticipates high growth. Financially, their total debt to equity ratio of 2.46 underscores a high leverage position, warranting attention to debt management amidst aggressive expansion pursuits.

Technical analysis reveals a consistent uptrend in Carvana’s weekly price action. The recent closing price of $374.0017 suggests ongoing bullish momentum. The trend exhibits higher highs and higher lows, indicative of strong buying pressure. Notably, the resistance level is near $380, while support sits around $350. Volume analysis supports the momentum with increasing closings at higher prices, presenting a lucrative buying opportunity. A short-term trading strategy involves entering on dips close to $350, focusing on a stop-loss at $345, capitalizing on the positive trend.

Recent news highlights significant catalysts bolstering Carvana’s outlook. With strategic movements like expanding ADESA’s valuation guide and enhancing transparency for wholesale buyers, Carvana is solidifying its competitive edge. Strong analyst support from Deutsche Bank and upgrades from Wedbush underpin confidence, with revised price targets nearing $400. As Carvana aligns this growth with anticipated sales exceeding 150,000 units in Q4, the company’s prospects appear robust. Comparatively, within the Consumer Discretionary and Vehicles benchmarks, Carvana stands out as a leader. Thus, the outlook remains positive, with a strategic view toward a price target around $400, supported by strong fundamentals and market sentiment.

Candlestick Chart

Weekly Update Nov 24 – Nov 28, 2025: On Friday, November 28, 2025 Carvana Co. stock [NYSE: CVNA] is trending up by 4.67%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Recent financial developments have cast a spotlight on Carvana’s improving fortunes. In its third quarter, the company’s reported revenue surged to $5.65 billion, eclipsing FactSet’s forecast of $5.11 billion. Analysts’ confidence is also evident in their ratings upgrade. Most notable is Wedbush’s price target increase to $400, supported by Carvana’s solid Q3 performance and expected significant retail sales in the subsequent quarter.

The figures reveal a company overcoming prior challenges, reinforced by robust online car adoption and a balance between supply chain improvements and consumer demand. Carvana’s revenue encapsulates its strategic alignment with market trends, as reflected in its over 150,000 anticipated retail unit sales for Q4. These earnings indicators suggest a promising trajectory for investors pondering entry into or expansion of their current holdings in Carvana stock.

More Breaking News

From a profitability angle, the company’s gross margin stands at a healthy 21.4%, which, combined with its operations and market strategies, sets a promising stage for sustained growth. Additionally, the rise in online car purchase adoption underscores the platform’s success in capturing customer interest, potentially paving the way for long-term market leadership.

Conclusion

Carvana’s impressive Q3 performance and subsequent market reactions paint a vivid picture of the firm’s capability to navigate previous hurdles and capitalize on emerging opportunities. With a roadmap underscored by robust revenue figures and strategic analyst upgrades, Carvana stands poised to capture significant market share. This well-timed momentum, coupled with expert ratings, spotlights Carvana as a potentially profitable trading entity moving forward. As millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.” As traders reassess their strategies ahead of Q4 and beyond, Carvana’s developments emerge as a salient narrative of growth resilience in today’s dynamic market.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”