Beaten-Down Car Stock for Next Bull Market

It was time to say goodbye.

No love was lost when my husband signed the dotted line and sold his SUV.

He was never a fan of the vehicle.

He purchased it as a no-frills car to “haul stuff.”

From toting countless bags of mulch to fruit trees to random two-by-fours of lumber … he got his money’s worth out of the car.

After years of hard work, the SUV began to have a lot of “fix or repair daily” issues.

He was over it.

What did he do next?

He pulled out his smartphone! With a few clicks, he sold it to an online used car company.

A couple of days later, the company came to our house, picked up the car and gave my husband a check.

The low-stress and highly lucrative experience forever changed how we will sell a car in the future.

Today, I’ll share why this company is the fastest-growing online used car dealer in the U.S. It’s positioned to be the leader in this space for years to come!

“A Better Way to Sell a Car”

One of Carvana Co.’s (NYSE: CVNA) mottos is: “A better way to sell a car.”

Using next-gen technology and digitization, Carvana operates a leading online platform for buying and selling used cars.

It offers vehicle inspections, 360-degree imaging technology, financing, warranty coverage and pickup and delivery services.

It offers a simple, automated and convenient way to buy or sell your car.

Carvana was added to one of our premium model portfolios with one premise in mind.

It’s an innovative, disruptive company that solves old-world problems.

Buying a car? Find the car you want from the comfort of your home, and Carvana delivers it to your front door!

Selling a car? With a few clicks from your phone or laptop, you can replace your vehicle without bargaining with a salesman.

carvana-stock

Now, you may be wondering: “Why buy into a virtual car dealership when car sales are down, especially considering recession fears?”

Well, in our experience, that is the ideal time to buy in.

The time to buy low and buy slow is when share prices have been beaten down on next-gen stocks with a bright future.

As Ian shared in our Market Insights webinar titled When to Expect the Next Bull Market” , regarding the current U.S. economic situation:

ian-quote-on-economy

Good Time to Buy? This Car Stock Trading at a MASSIVE Discount

Since the beginning of 2022, Carvana’s share price has underperformed the industry.

It’s faced rising expenses, which it’s now aiming to rein in.

In a second-quarter 2022 letter to shareholders, the company stated:

The second quarter was a quarter of adjustment and progress for Carvana.

As a result of changes in the economy, the market and the industry, we shifted our priorities to focus on driving profitability through operating efficiency and reducing expenses.

The people inside Carvana are responding. We have implemented new internal processes to accelerate our progress, and we are now operating more effectively across the business than at any other time in our history.

So yes, the company is facing headwinds from the current macro environment and inflationary trends. It has also withdrawn its 2022 outlook. But over the long run, these difficulties will likely subside.

Investors who purchase its shares at today’s price (under $40 per share) may be in for a windfall if they’re willing take on some risk and hold with patience.

Plus, future revenue projections for Carvana are positive!

Revenue is projected to increase 170% by 2026, growing from $12.8 billion in 2021 to $34.5 billion in 2026:

carvana-stock-price

So for the Labor Day holiday, if you’d like to dip your toes in the pool as well as in a hugely discounted used car e-commerce platform, consider Carvana.

And speaking of cars…

Ian King, editor of the monthly research service Strategic Fortunes, is recommending a stock tomorrow in his September issue that is the mastermind of the next generation of the car industry — electric vehicles!

If you’re looking for a place to capitalize on the acceleration of electric vehicles, he has found a company that’s trading at an amazing value in comparison to how big the market could be.

And the best part?

The company makes money! It’s not just an idea that it could be profitable in five or six years … it’s making money now.

To make sure you receive Ian’s September Strategic Fortunes issue the moment it hits his subscribers’ inboxes, click here.

Until next time,

Amber Lancaster

Amber Lancaster

Director of Investment Research, Strategic Fortunes

Disclaimer: We will not track any stocks in Winning Investor Daily. We are just sharing our opinions, not advice. If you want access to the stocks in our model portfolio with tracking, updates and buy/sell guidance, please check out Strategic Fortunes.

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