Carvana, Wingstop in Stephens' best idea list for 2025

Investing.com -- Stephens reiterated an Overweight rating for Carvana (NYSE:CVNA ), with $300 price target as analysts expect 2025 to mark a significant inflection point for the online used-car retailer. Carvana streamlined its cost structure, expanded same-day delivery to 35% of the U.S. population, and fully integrated its ADESA acquisition, enhancing logistics and retail operations.

"We believe 2024 was a year of planting many seeds and beginning to see an early harvest. 2025 should be the year when the full harvest becomes evident," analyst wrote. 

Wingstop (NASDAQ:WING ), also rated Overweight with a $468 price target, was highlighted for its growth trajectory in the restaurant sector. Stephens emphasized the chain’s potential to broaden its consumer base, particularly among younger demographics, aided by a fourfold increase in advertising since 2018 and its visibility through social media and sports partnerships.

“While WING is well-known among the investment community, we believe there is still ample runway for increased consumer awareness,” Stephens stated.

Both companies are expected to benefit from catalysts in their respective industries, setting the stage for a strong 2025.

Source: Investing.com