CNBC’s Jim Cramer said Monday to buy shares of auto retailer Carvana if they decline again. Carvana is a clear leader in the used-car space, and its turnaround story has been very promising, Cramer said. He pointed to the stock’s recent gains as proof. Shares are up 22% over the past month, compared to the S & P 500 ‘s advance of less than 1%. “These guys had a resurrection,” he said during “Squawk on the Street” on Monday. Cramer said that CEO Ernest Garcia has done a remarkable job getting the company back on track. “They’re doing many things right, but I would point out that [a] dip is a pretty good opportunity.” “There are still people who remember that [Carvana] had trouble,” Cramer said, a nod to the stock’s awful 2022 performance , when Carvana fell out of Wall Street’s favor and plunged 98% in a year due to poor macroeconomic conditions. “I’m saying drop that narrative and accept the fact that these guys are winning in one of the biggest markets in the world.” Analysts at UBS agree: On Monday, they initiated coverage of Carvana with a buy rating and a $450 price target, implying an upside of around 20% from Friday’s close. UBS forecasts more revenue growth for Carvana as buyers and sellers take their transactions online. “CVNA has a differentiated, best-in-class online platform and customer experience that positions them to gain share in the large but fragmented used-vehicle market,” the analysts wrote. Shares of Carvana were up less than 1% in early Monday trading. Here’s a full list of the stocks in Jim’s Charitable Trust , the portfolio used by the CNBC Investing Club.
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