Carvana to Establish Megasite in Phoenix to Boost Processing Capacity

Carvana Co. CVNA, a leading online platform for buying and selling used vehicles, announced plans to establish an integrated auction and reconditioning Megasite in Phoenix. The initiative will merge Carvana’s Inspection and Reconditioning Center (IRC) operations with its existing ADESA Phoenix wholesale auction facility while continuing to offer both in-lane and digital auction services. This integration will boost Carvana’s overall processing capacity and enhance services for both retail and wholesale clients in the region.Located in Chandler, AZ, the ADESA Phoenix site has supported local wholesale auto auctions for over two decades. Covering nearly 100 acres and offering more than 5,000 parking spaces, the facility provides ample room to accommodate both Carvana’s reconditioning operations and ongoing ADESA auction activities.By adding IRC capabilities to ADESA Phoenix, CVNA increases its total vehicle reconditioning output, enhancing selection for customers and improving operational efficiency. This also introduces a larger inventory pool to a new metro area, enabling faster delivery, sometimes within the same day, for local car buyers. Meanwhile, wholesale clients will continue to enjoy full access to auctions, now supported by stronger on-site reconditioning capabilities.The transformation into an auction-IRC Megasite will be supported by the site's expansive infrastructure and Carvana’s proprietary CARLI software, designed to streamline operations, scale production and maintain consistency across the IRC network.Earlier this month, Carvana revealed a similar plan for a Megasite in central New Jersey, integrating reconditioning services into the ADESA New Jersey auction facility in Manville. Like the Phoenix location, the New Jersey site spans roughly 100 acres and has been a staple in the local wholesale auction market for nearly 30 years. The integration will also increase production capacity and improve offerings for retail and wholesale customers in the area while retaining full auction functionality.CVNA’s Zacks Rank & Other Key PicksCarvana carries a Zacks Rank #2 (Buy) at present.Some other top-ranked stocks in the auto space are China Yuchai International Limited CYD, Michelin MGDDY and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CYD’s 2025 sales and earnings indicates year-over-year growth of 9.17% and 36.84%, respectively. EPS estimates for 2025 have improved 25 cents in the past 60 days. The Zacks Consensus Estimate for MGDDY’s 2025 earnings implies year-over-year growth of 40.56%. EPS estimates for 2025 and 2026 have improved 27 cents and 18 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 60 days.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strattec Security Corporation (STRT): Free Stock Analysis Report Michelin (MGDDY): Free Stock Analysis Report Carvana Co. (CVNA): Free Stock Analysis Report China Yuchai International Limited (CYD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks