CARGCarGurus shows solid fundamental strength and a stable thematic position in the automotive online marketplace sector. Technical indicators suggest mixed momentum with potential short-term consolidation. Suitable for growth-oriented investors with tolerance for moderate volatility.
CarGurus operates a comprehensive online automotive platform with diversified services across vehicle buying, selling, financing, and data insights. It benefits from ongoing digital transformation in car sales and vehicle financing, but competition and market saturation remain challenges.
The company maintains a healthy balance sheet and positive cash flows with improving profitability, though current valuation metrics suggest a premium price reflecting growth expectations.
The stock is exhibiting mixed short-term technical signals with some oscillators indicating oversold conditions while moving averages, especially shorter periods, suggest bearish momentum. The overall trend remains vulnerable to near-term pullbacks but long-term averages support a stable price base.
| Factor | Score |
|---|---|
| Market Position & Digital Transformation | 75 |
| Innovation & Services Expansion | 68 |
| Sector Growth & Competition | 65 |
| Geographic Diversification | 72 |
| Regulatory Environment | 70 |
| Factor | Score |
|---|---|
| Valuation | 40 |
| Profitability | 60 |
| Growth | 70 |
| Balance Sheet Health | 85 |
| Cash Flow | 75 |
| Factor | Score |
|---|---|
| Trend Analysis | 65 |
| Momentum | 70 |
| Volume Confirmation | 65 |
| Support & Resistance | 70 |
Consistent Earnings Surprises
The company has reported positive earnings surprises in 9 out of the last 10 quarters, with surprises as high as 121.84%, indicating strong earnings momentum.
Improving Price to Earnings Ratio
The trailing PE ratio on a TTM basis is 31.1, significantly lower than 147.5 in 2024, showing valuation is becoming more attractive relative to recent earnings.
Very High PE Ratio
A trailing PE of 91.4 substantially exceeds typical market and industry averages, indicating the stock may be overvalued or have high growth expectations priced in.
Low Net Margins and Profitability Pressure
Net margin for 2024 Q4 is only 2.3%, down sharply from 11.5% in 2021, reflecting margin compression and profitability challenges.
August 2025
8
Next Earnings Date
H: $0.56
A: $0.53
L: $0.46
H: 236.50M
A: 232.29M
L: 226.50M
CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace that allows customers to search for new and used car listings from its dealers; and connects dealers to a large audience of informed and engaged consumers while providing dealers with actionable data-based insights. It also offers Digital Deal which allows shoppers to start purchase from a VDP on eligible listings that provides them with purchase options; Finance in Advance, where eligible consumers can pre-qualify for financing on cars from dealerships that offer financing from partners; Sell My Car Top Dealer Offers which allows dealers to make tailored trade-in offers; and Sell My Car Instant Max Cash Offer which allows consumers to sell vehicles to dealers online. In addition, the company provides dealer listings and data insights products; auto manufacturers and others advertiser products, such as brand reinforcement, category sponsorship, automobile segment exclusivity, and consumer segment exposure; Autolist, an online automotive marketplace through mobile applications and a website; and PistonHeads which is an automotive marketplace, auction platform, and editorial site for automotive enthusiasts. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Boston, Massachusetts.
38.92 USD
The 39 analysts offering 1 year price forecasts for CARG have a max estimate of 42.00 and a min estimate of 33.00.