We recently published a list of 10 Firms Post Strong Gains Amid Wall Street Bloodbath. In this article, we are going to take a look at where Carvana Co. (NYSE:CVNA) stands against other firms post strong gains amid Wall Street bloodbath.
Wall Street’s main indices closed sharply in the red on Tuesday, as investors shifted to other higher-yielding assets following better Treasury yields.
The Nasdaq Composite led the drop, losing 1.89 percent, followed by the S&P 500 declining 1.11 percent. Meanwhile, the Dow Jones dipped by 0.42 percent.
Meanwhile, let us look at the ten firms that bucked an overall broader market downturn and posted notable gains and explore why.
To come up with Tuesday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A customer buying a used car with the help of a finance specialist.
Carvana Co. (NYSE:CVNA)
Shares of Carvana Co. (NYSE:CVNA) rose for a second day on Tuesday, rallying by 5.03 percent to close at $198.35 apiece after analysts from RBC upgraded their stock rating to “outperform” from “sector perform” previously.
The company also raised the target price to $280 from $70 prior, signaling a more bullish outlook.
Earlier this week, Carvana (NYSE:CVNA) reinstated an agreement to sell $4 billion of used car loan receivables to Ally Financial. This followed a report by research investment firm Hindenburg accusing Carvana of lax car loan underwriting practices, insider trading, and accounting manipulation to artificially inflate its bottom line.
While it acknowledged ownership of shares in the company, Hindenburg said it compiled 49 interviews with former Carvana employees.
The firm described the car retailer’s financial turnaround from the verge of bankruptcy in 2022 as a mirage, a claim that Carvana firmly debunked.
Overall, CVNA ranks 7th on our list of firms post strong gains amid Wall Street bloodbath. While we acknowledge the potential of CVNA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.