--- title: "Carvana Stock (CVNA) Jumps 10% on S&P 500 Inclusion News" type: "News" locale: "en" url: "https://longbridge.com/en/news/268859264.md" description: "Carvana's stock surged 10% after-hours following news of its inclusion in the S&P 500, effective December 22. This inclusion reflects confidence in Carvana's financial health, with strong Q3 results and a 97% year-to-date rally. The S&P 500 addition is expected to boost demand for CVNA shares, as funds tracking the index will add the stock to their portfolios. Carvana aims to sell 3 million cars annually with a 13.5% adjusted EBITDA margin in 5-10 years. Wall Street rates CVNA as a Strong Buy with an average price target of $432.67." datetime: "2025-12-07T12:53:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/268859264.md) - [en](https://longbridge.com/en/news/268859264.md) - [zh-HK](https://longbridge.com/zh-HK/news/268859264.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/268859264.md) | [繁體中文](https://longbridge.com/zh-HK/news/268859264.md) # Carvana Stock (CVNA) Jumps 10% on S&P 500 Inclusion News Carvana (CVNA), the online used-car platform, rose about 10% in after-hours trading on Friday following the release of the news that it will join the S&P 500 (SPX). The change will take effect on December 22 and is a big moment for the company after a long recovery. ### TipRanks Cyber Monday Sale - Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence. - Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off CVNA stock has rallied about 97% year-to-date. The decision comes after a strong year for Carvana, with better margins, higher sales, and a steady recovery in used-car demand. It also shows growing confidence in the company's financial health. ## **SPX Inclusion Is a Big Boon for Carvana** Companies added to the SPX often see their shares surge upon inclusion, as it opens doors to a broader investor base. Both active and passive funds that track the S&P 500 index are required to add these companies to their portfolios, thus increasing demand. To qualify for inclusion, the company must have reported a profit in its most recent quarter and have cumulative profit in the trailing twelve months. In its Q3FY25 results, Carvana reported Q3 GAAP earnings per share of $1.03, up 61% from a year ago. Excluding the impact of the decline in the value of warrants, the EPS was $1.50 per share. Analysts were expecting adjusted EPS of $1.30 on revenue of $5.11 billion. Also, revenues came in at $5.65 billion, up 55% year-over-year. Looking ahead, Carvana continues to aim to sell 3 million cars per year at a 13.5% adjusted EBITDA margin within 5 to 10 years. Carvana stated that its guidance assumes the "environment remains stable." ## **More Additions and Removals in the S&P 500** Carvana was not the only new entrant. CRH (CRH), a global building materials provider, and Comfort Systems USA (FIX), an HVAC installation and services company, will join the S&P 500 as well. At the same time, LKQ (LKQ), Solstice Advanced Materials (SOLS), and Mohawk Industries (MHK) will be removed from the index. The changes reflect the S&P 500's effort to match market trends and keep sector weights balanced. ## **Is CVNA a Good Stock to Buy?** Overall, Wall Street has a Strong Buy consensus rating on Carvana stock based on 16 Buys and three Holds. The average CVNA stock price target of $432.67 indicates 8.23% upside potential. ### Related Stocks - [Carvana Co. (CVNA.US)](https://longbridge.com/en/quote/CVNA.US.md) ## Related News & Research - [Is Carvana Co. (CVNA) a good stock to buy now?](https://longbridge.com/en/news/280939891.md) - [Why is Carvana's stock split announcement being treated as bearish?](https://longbridge.com/en/news/281060328.md) - [Carvana Set To Become Top US Independent Used-Car Dealer: Analyst](https://longbridge.com/en/news/280361375.md) - [Carvana Stock: Is CVNA Outperforming the Consumer Cyclical Sector?](https://longbridge.com/en/news/280181342.md) - [One Basis Point Is Moving Billions Into SPYM](https://longbridge.com/en/news/281064173.md)