Carvana Surges Ahead in Momentum Race: Why CVNA Outshines Uber for Aggressive Growth Investors

Carvana (CVNA) and Uber (UBER) are both e-commerce pioneers, but their trajectories under a momentum investing lens could not be starker. While Uber benefits from steady profitability and long-term automation bets, Carvana's recent surge in earnings revisions, price momentum, and top-tier Zacks rankings make it the clearer choice for investors seeking aggressive growth. Here's why Carvana deserves your attention—and why Uber lags in the near term.

The Momentum Edge: Carvana's A+ Score vs. Uber's Missing Catalyst

Zacks Investment Research's Momentum Style Score ranks stocks based on price trends, earnings revisions, and other technical factors. Carvana holds an “A” Momentum Style Score, the highest rating, reflecting its 142.3% one-year stock gain, 37.1% rise over four weeks, and consistent upward revisions to earnings estimates. By contrast, Uber's Momentum Style Score is not disclosed here, but its recent performance lacks the same near-term catalysts.

Uber's Q1 2025 results showed solid progress—$6.5B in mobility revenue and $1.2B in operating income—but its stock has stagnated. Analysts highlight its $1 trillion autonomous vehicle market opportunity, but execution risks and lengthy timelines dilute momentum. Carvana, meanwhile, benefits from a 71% quarterly revenue jump (QoQ) and a 28.2% upward revision in 2025 earnings estimates over 60 days, as five analysts boosted their targets to $4.23 per share.

Why Earnings Revisions Matter Now

Carvana's recent analyst upgrades aren't just numbers—they signal a shift in sentiment. The Zacks Consensus Estimate for 2025 rose by $0.86 in the last two months, driven by stronger used-car demand and cost efficiencies. This contrasts sharply with Uber, where earnings revisions have been muted. While Uber's partnerships with autonomous delivery firms like Serve Robotics (SERV) are promising, they remain speculative. Carvana's tangible gains—like its 137.6% average earnings surprise (beating estimates by nearly 140%)—provide a clearer path to outperformance.

Historically, Carvana's stock has rewarded investors who act on strong earnings surprises. When quarterly revenue exceeds estimates by over 50%, the stock typically rises 5.81% the next day, with an average 28.26% gain over the subsequent 20 trading days. This short-term performance aligns with its Zacks Momentum Style Score and analyst upgrades, underscoring its near-term appeal. However, this strategy carries risks: while the compound annual growth rate (CAGR) reached 28.26%, volatility hit 62.67% and the maximum drawdown dropped to -85.94%. The negative Sharpe ratio (-0.14) reflects the high risk-reward tradeoff, making it suitable only for aggressive investors.

The Zacks Rank: Carvana's #2 Ranking Signals Buy Signals

Though not the mythical “#1” ranking mentioned in some summaries, Carvana's Zacks Rank #2 (Buy) places it among the top 10% of stocks for momentum. This reflects its strong relative strength, positive earnings trends, and a technical setup primed for further gains. Uber, by comparison, holds a middling Zacks Rank of #3 (Hold), indicating fewer near-term catalysts.

Risks and the Case for Caution

Carvana's aggressive valuation—its P/E ratio has climbed as it grows—means a stumble could hurt. Meanwhile, Uber's $22.9 forward P/E (up from $16.7 in early 2025) still looks reasonable given its scale. However, its earnings growth is more diluted across mobility, delivery, and automation. Carvana's singular focus on used-car e-commerce, paired with its 170 million monthly active users (a metric Uber dwarfs it in), makes it a purer momentum play.

Investment Decision: CVNA for Speed, UBER for Stability

For aggressive growth investors, Carvana's combination of technical strength, analyst upgrades, and a Zacks Rank #2 makes it the superior momentum bet. Its one-year 142% return and 71% QoQ revenue growth suggest it's primed to capitalize on rising consumer demand for used cars.

Uber, while undeniably a long-term winner in transportation tech, lacks the same near-term catalysts. Its autonomous vehicle partnerships (e.g., with Waymo) and Serve Robotics' 2,000-unit robot deployment by year-end 2025 are promising, but execution risks and valuation headwinds limit its appeal for momentum-focused traders.

Final Verdict

Investors chasing immediate momentum should prioritize Carvana (CVNA). Its superior Zacks scores, earnings revisions, and price trends position it to outperform in the coming months. Uber remains a hold for those willing to bet on its long-term automation narrative, but for now, the momentum crown belongs to Carvana.

Data as of June 6, 2025. Past performance does not guarantee future results.