Is Carvana Stock Underperforming the S&P 500?

Tempe, Arizona-based Carvana Co. (CVNA) operates an e-commerce platform for buying and selling used cars. Valued at a market cap of $70.4 billion, the company provides vehicle acquisition, inspection, and reconditioning; an online search and shopping experience; financing; complementary products; and a logistics network, among other services.

Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” CVNA fits squarely in that category, with a market cap above this threshold that reflects its size and influence in the auto and truck dealerships industry.     

Despite its strength, CVNA stock slipped 34.3% from its 52-week high of $97.38, reached on Jan. 23. The stock is down 1.4% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 4.6% rise during the same time frame.   

However, the scenario remains the same in the longer term. The stock has declined 15.8% over the past 52 weeks, while SPX delivered 15.8% returns over the same time frame, outpacing the stock.  

CVNA has been trading below its 200-day and 50-day moving averages since this month, indicating short-term bearish momentum. 

On July 30, CVNA stock fell 7.4% following the release of its Q2 2026 earnings. The company’s revenue for the quarter amounted to $7.4 billion, surpassing the Street’s estimates. Moreover, its adjusted EPS came in at $0.42, matching the consensus estimates. However, its adjusted EBITDA margin contracted by 200 bps to 10.4%, accompanied by a fall in its non-GAAP gross profit per unit. Management expects its full-year adjusted EBITDA in the range of $2.7 billion to $3 billion, which also missed Wall Street’s expectations, leading to a loss of investor confidence. 

When stacked against its rival, Penske Automotive Group, Inc. (PAG), CVNA has underperformed. Over the past year, PAG stock has grown 20.5%.     

Analysts’ view of CVNA stock is moderately bullish. Among the 23 analysts covering the stock, the overall consensus rating is “Moderate Buy.” Its mean price target of $84.89 offers a 32.7% upside potential.