Amid stubbornly high inflation and consecutive rate hikes, the Consumer Confidence Index of the Conference Board fell to 100.2 in November, down from 102.2 in October. The index is at its lowest level since July. Moreover…
according to Goldman Sachs Group Inc. (GS) strategists, the bear market phase is expected to extend into 2023. They said, “The near-term path for equity markets is likely to be volatile and down.”
Although Deutsche Bank AG (DB) also believes the bear market bounce will extend well into 2023, the bank also expects a recession to hit the U.S. economy by mid-2023.
Given the backdrop, investors should avoid buying fundamentally weak stocks Carvana Co. (CVNA), Opendoor Technologies Inc. (OPEN), and Skillz Inc. (SKLZ).
Carvana Co. (CVNA)
CVNA and its subsidiaries operate an e-commerce platform for buying and selling used cars in the United States.
CVNA’s negative EBIT Margin of 7.78% is lower than the industry average of 7.90%, and its negative net income margin of 5.99% is lower than the industry average of 5.14%.
CVNA’s net sales and operating revenues came in at $3.39 billion for the third quarter that ended September 30, 2022, down 2.7% year-over-year. Its net loss came in at $283 million, up 784.4% year-over-year, while its loss per share came in at $2.67, up 602.6% year-over-year.
CVNA’s revenue is expected to….
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