There aren’t many growth stories out there larger than Carvana (CVNA), which is aiming to revolutionize the used car buying process (a $750 billion-plus industry), explains Mike Cintolo, growth stock expert and editor of Cabot Top Ten Trader.

The company sells used cars online, but it’s not just a plain old website — a large inventory (generally north of 10,000 cars), 360-degree interior and exterior views of every car, guaranteeing none of them have been in an accident.

The company also offers a seven-day test drive period, good prices (usually a grand less, on average) and quick (sometimes next-day) delivery in most markets all serve to make the car buying process as easily and fruitful as possible.

Carvana’s stock is strong today because management continues to execute on its plan and big investors are growing more confident the firm will be a huge player in the years ahead — revenues are surging at triple digit rates, and the Q4 trends remained very bullish, with car sales up 105% (to 27,750), gross profit per car up 32% (to $2,131) and continued market share gains.

In fact, the pace of share gains in Carvana’s various markets has been very consistent (it has about 2% market share in its oldest market, Atlanta, with 30% unit growth last year), as has the dip in customer acquisition costs, so as the firm enters new markets (85 markets in December, up from 44 a year ago.

Management expects to be in 140 by the end of 2019), it’s easy to see continued rapid growth. The bottom line is still deep in the red due to expansion costs, but that seems a worthwhile tradeoff given the upside potential.

CVNA broke out around $25 in April of last year and zoomed as high as $72 in September before falling apart with the market last fall; it didn’t find support until it was back at $29 in December.

Shares didn’t find much buying after the bottom, either — it was still around $30 in early February — but we’re very impressed with the huge-volume buying seen since then, including the push higher last week even as most growth stocks sagged. There’s still overhead to worry about, so if you’re game, start small on dips and use a loose stop.

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