Is CarGurus Stock a Good Investment?
CarGurus Investment Advice | CARG |
- Examine CarGurus' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research CarGurus' leadership team and their track record. Good management can help CarGurus navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Interactive Media & Services space and any emerging trends that could impact CarGurus' business and its evolving consumer preferences.
- Compare CarGurus' performance and market position to its competitors. Analyze how CarGurus is positioned in terms of product offerings, innovation, and market share.
- Check if CarGurus pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about CarGurus' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in CarGurus stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if CarGurus is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine CarGurus Stock
Researching CarGurus' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 96.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.6. CarGurus recorded a loss per share of 0.45. The entity had not issued any dividends in recent years.
To determine if CarGurus is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding CarGurus' research are outlined below:
| Over 96.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: CarGurus Inc Releases 2024 Consumer Insights Report Highlighting Increased Buyer ... |
CarGurus Quarterly Cash And Short Term Investments |
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CarGurus uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in CarGurus. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to CarGurus' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact CarGurus' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises CarGurus' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-08-07 | 2018-06-30 | 0.04 | 0.06 | 0.02 | 50 | ||
2020-02-13 | 2019-12-31 | 0.14 | 0.17 | 0.03 | 21 | ||
2019-08-06 | 2019-06-30 | 0.07 | 0.1 | 0.03 | 42 | ||
2019-02-28 | 2018-12-31 | 0.08 | 0.11 | 0.03 | 37 | ||
2018-11-07 | 2018-09-30 | 0.05 | 0.08 | 0.03 | 60 | ||
2024-05-09 | 2024-03-31 | 0.28 | 0.32 | 0.04 | 14 | ||
2018-05-03 | 2018-03-31 | 0.02 | 0.06 | 0.04 | 200 | ||
2018-03-01 | 2017-12-31 | 0.01 | 0.05 | 0.04 | 400 |
Know CarGurus' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as CarGurus is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading CarGurus backward and forwards among themselves. CarGurus' institutional investor refers to the entity that pools money to purchase CarGurus' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Vitruvian Partners | 2024-09-30 | 1.3 M | Prevatt Capital Ltd | 2024-09-30 | 1.2 M | Fort Washington Investment Advisors Inc | 2024-09-30 | 1.2 M | Select Equity Group Lp | 2024-09-30 | 1.1 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1 M | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 1 M | Sunriver Management Llc | 2024-09-30 | 1 M | Northern Trust Corp | 2024-09-30 | 893 K | Nuveen Asset Management, Llc | 2024-09-30 | 823.4 K | Blackrock Inc | 2024-06-30 | 12.7 M | Vanguard Group Inc | 2024-09-30 | 9.5 M |
CarGurus' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.85 B.Market Cap |
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CarGurus' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.04 | |
| Return On Capital Employed | 0.04 | 0.04 | |
| Return On Assets | 0.03 | 0.03 | |
| Return On Equity | 0.05 | 0.05 |
Determining CarGurus' profitability involves analyzing its financial statements and using various financial metrics to determine if CarGurus is a good buy. For example, gross profit margin measures CarGurus' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of CarGurus' profitability and make more informed investment decisions.
CarGurus' Earnings Breakdown by Geography
Evaluate CarGurus' management efficiency
CarGurus has return on total asset (ROA) of 0.0563 % which means that it generated a profit of $0.0563 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0774) %, meaning that it created substantial loss on money invested by shareholders. CarGurus' management efficiency ratios could be used to measure how well CarGurus manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to 0.04. The current Return On Capital Employed is estimated to decrease to 0.04. At this time, CarGurus' Other Current Assets are most likely to increase significantly in the upcoming years. The CarGurus' current Intangible Assets is estimated to increase to about 32 M, while Non Currrent Assets Other are projected to decrease to roughly 11.6 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 5.45 | 5.72 | |
| Tangible Book Value Per Share | 3.85 | 2.02 | |
| Enterprise Value Over EBITDA | 32.54 | 34.17 | |
| Price Book Value Ratio | 4.44 | 4.21 | |
| Enterprise Value Multiple | 32.54 | 34.17 | |
| Price Fair Value | 4.44 | 4.21 | |
| Enterprise Value | 2.6 B | 3.3 B |
The strategic initiatives led by CarGurus' management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Beta 1.555 |
Basic technical analysis of CarGurus Stock
As of the 18th of December 2024, CarGurus shows the Downside Deviation of 1.4, mean deviation of 1.26, and Risk Adjusted Performance of 0.1773. CarGurus technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm CarGurus treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if CarGurus is priced correctly, providing market reflects its regular price of 37.14 per share. Given that CarGurus has jensen alpha of 0.3197, we suggest you to validate CarGurus's prevailing market performance to make sure the company can sustain itself at a future point.CarGurus' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific CarGurus insiders, such as employees or executives, is commonly permitted as long as it does not rely on CarGurus' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases CarGurus insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
CarGurus' Outstanding Corporate Bonds
CarGurus issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. CarGurus uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most CarGurus bonds can be classified according to their maturity, which is the date when CarGurus has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US141781BF09 Corp BondUS141781BF09 | View | |
| CARGIL 75 02 FEB 26 Corp BondUS141781BN33 | View | |
| CARGIL 3125 25 MAY 51 Corp BondUS141781BR47 | View | |
| CARGIL 17 02 FEB 31 Corp BondUS141781BQ63 | View | |
| US141781BK93 Corp BondUS141781BK93 | View | |
| US141781BJ21 Corp BondUS141781BJ21 | View | |
| US141781BM59 Corp BondUS141781BM59 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View |
Understand CarGurus' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing CarGurus' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1773 | |||
| Market Risk Adjusted Performance | 0.3774 | |||
| Mean Deviation | 1.26 | |||
| Semi Deviation | 1.09 | |||
| Downside Deviation | 1.4 | |||
| Coefficient Of Variation | 422.16 | |||
| Standard Deviation | 1.64 | |||
| Variance | 2.7 | |||
| Information Ratio | 0.1957 | |||
| Jensen Alpha | 0.3197 | |||
| Total Risk Alpha | 0.2484 | |||
| Sortino Ratio | 0.2303 | |||
| Treynor Ratio | 0.3674 | |||
| Maximum Drawdown | 7.36 | |||
| Value At Risk | (1.86) | |||
| Potential Upside | 3.49 | |||
| Downside Variance | 1.95 | |||
| Semi Variance | 1.19 | |||
| Expected Short fall | (1.45) | |||
| Skewness | 0.3631 | |||
| Kurtosis | 0.6007 |
| Risk Adjusted Performance | 0.1773 | |||
| Market Risk Adjusted Performance | 0.3774 | |||
| Mean Deviation | 1.26 | |||
| Semi Deviation | 1.09 | |||
| Downside Deviation | 1.4 | |||
| Coefficient Of Variation | 422.16 | |||
| Standard Deviation | 1.64 | |||
| Variance | 2.7 | |||
| Information Ratio | 0.1957 | |||
| Jensen Alpha | 0.3197 | |||
| Total Risk Alpha | 0.2484 | |||
| Sortino Ratio | 0.2303 | |||
| Treynor Ratio | 0.3674 | |||
| Maximum Drawdown | 7.36 | |||
| Value At Risk | (1.86) | |||
| Potential Upside | 3.49 | |||
| Downside Variance | 1.95 | |||
| Semi Variance | 1.19 | |||
| Expected Short fall | (1.45) | |||
| Skewness | 0.3631 | |||
| Kurtosis | 0.6007 |
Consider CarGurus' intraday indicators
CarGurus intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of CarGurus stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 32073.6 | |||
| Daily Balance Of Power | (0.90) | |||
| Rate Of Daily Change | 0.96 | |||
| Day Median Price | 37.8 | |||
| Day Typical Price | 37.58 | |||
| Price Action Indicator | (1.43) | |||
| Period Momentum Indicator | (1.54) |
CarGurus Corporate Filings
F4 | 5th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 3rd of October 2024 Other Reports | ViewVerify |
CarGurus Stock media impact
Far too much social signal, news, headlines, and media speculation about CarGurus that are available to investors today. That information is available publicly through CarGurus media outlets and privately through word of mouth or via CarGurus internal channels. However, regardless of the origin, that massive amount of CarGurus data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of CarGurus news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of CarGurus relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to CarGurus' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive CarGurus alpha.
CarGurus Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards CarGurus can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
CarGurus Historical Investor Sentiment
Investor biases related to CarGurus' public news can be used to forecast risks associated with an investment in CarGurus. The trend in average sentiment can be used to explain how an investor holding CarGurus can time the market purely based on public headlines and social activities around CarGurus. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
CarGurus' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for CarGurus and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average CarGurus news discussions. The higher the estimate score, the more favorable the investor's outlook on CarGurus.
CarGurus Corporate Management
| Andrea Eldridge | Chief Officer | Profile | |
| Elisa Palazzo | Principal Officer | Profile | |
| Dafna Sarnoff | Chief Officer | Profile | |
| Javier Zamora | General Secretary | Profile | |
| Brad Rosenfeld | Executive Commercialization | Profile | |
| Kirndeep Singh | VP Relations | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CarGurus. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. For more detail on how to invest in CarGurus Stock please use our How to Invest in CarGurus guide.You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Is Interactive Media & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CarGurus. If investors know CarGurus will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CarGurus listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.265 | Earnings Share (0.45) | Revenue Per Share 8.361 | Quarterly Revenue Growth 0.054 | Return On Assets 0.0563 |
The market value of CarGurus is measured differently than its book value, which is the value of CarGurus that is recorded on the company's balance sheet. Investors also form their own opinion of CarGurus' value that differs from its market value or its book value, called intrinsic value, which is CarGurus' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CarGurus' market value can be influenced by many factors that don't directly affect CarGurus' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between CarGurus' value and its price, as these two are different measures arrived at by various means. Investors typically determine if CarGurus is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CarGurus' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.