ACV Auctions Inc. (NYSE:ACVA) is one of the best single digit stocks to buy according to analysts. On January 21, Barclays raised the firm’s price target on ACV Auctions to $8 from $7 and kept an Equal Weight rating as part of a Q4 2025 auto retail group outlook. Although the firm broadly lowered sector estimates due to pressure on auto sales units, it noted that trade checks indicate the used vehicle market currently possesses good momentum.
In Q3 2025, ACV Auctions Inc. (NYSE:ACVA) made revenue of $200 million, which represented 16% year-over-year growth, with vehicle sales increasing 10% to 218,000 units. Key growth drivers included a 70% increase in ACV Capital revenue and expanded dealer network penetration, which reached 35% for franchised rooftops. Management highlighted strong performance in emerging regions like Southern California and the Midwest, where unit growth exceeded 20%, supported by ongoing investments in AI tech and transportation margin expansion.
Despite these records, the company noted several headwinds, including dealer wholesale price depreciation and increased arbitration costs. ACV adjusted its Q4 2025 revenue guidance to $180 to $184 million to reflect a more challenging market environment and reduced exposure to high-risk segments following the bankruptcy of a former customer. For the full year 2025, the company expects revenue between $756 and $760 million.
Photo by Nima Sarram on Unsplash
ACV Auctions Inc. (NYSE:ACVA) provides a wholesale auction marketplace to facilitate business-to-business used vehicle sales between a selling and buying dealership.
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Disclosure: None. This article is originally published at Insider Monkey.
