This Yahoo Finance article from December 12, 2022 names Carvana (CVNA: $5/share) the “worst company of the year” and highlights our adding CVNA to our Zombie Stock list in June of this year:
“The cash bonfire is roaring,” New Constructs said in a June 23 report. “Despite raising capital just three months ago, Carvana will likely need to raise more before the end of this year.”
Carvana’s weak competitive position and its overvalued stock price led us to put it in the Danger Zone in April 2019 and reiterate it as a Danger Zone pick in August 2020. See all our research on Carvana here.
Since we named it a Zombie Stock, Carvana’s stock is down 83% and has outperformed the S&P 500 as a short by 85%. Since our original Danger Zone report, Carvana’s stock is down 92% and has outperformed the S&P 500 as a short by 125%. See Figure 1. See the complete list of all the Zombie Stocks here.
Figure 1: Danger Zone Performance: From Date of Publication Through 12/15/22
Sources: New Constructs, LLC
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This article was originally published on December 15, 2022.
Disclosure: David Trainer, Kyle Guske II, Matt Shuler, and Italo Mendonça receive no compensation to write about any specific stock, sector, style, or theme.
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