CarGurus Stock Outlook Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CARG?
Source: Yahoo Finance
- Analyst Rating Adjustment: Needham lowered the price target for CarGurus from $44 to $37 while maintaining a Buy rating, indicating that despite concerns about the company being replaced, the analyst believes these fears are exaggerated, reflecting confidence in the company's future performance.
- Brand Campaign Expansion: On February 11, CarGurus announced the expansion of its 'Big Deal' brand campaign, featuring AI-driven innovations designed to simplify online research and comparison, helping consumers make more personalized and confident decisions at dealerships, thereby enhancing user experience.
- Market Position Reinforcement: As the most visited car shopping site, CarGurus continues to invest in innovations to improve consumer transparency and confidence, with CMO Dafna Sarnoff emphasizing the company's commitment to redefining the car shopping experience, which strengthens its competitive position in the market.
- Investment Potential Assessment: While slightly more than half of analysts rate CarGurus as a Buy, with a one-year median price target of $40.50 indicating a 48.13% upside potential, some opinions suggest that certain AI stocks offer greater upside potential and carry less downside risk.
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Analyst Views on CARG
Wall Street analysts forecast CARG stock price to rise
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 27.730
Low
40.00
Averages
42.38
High
45.00
Current: 27.730
Low
40.00
Averages
42.38
High
45.00
About CARG
CarGurus, Inc. (CarGurus) offers a multinational, online automotive platform for buying and selling vehicles that offer both digital retail solutions and the CarOffer digital wholesale platform. The CarGurus platform enables consumers to purchase and/or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, instantly acquire, effectively market, and quickly sell vehicles, all with a nationwide reach. It operates through two segments: U.S. Marketplace and Digital Wholesale. The U.S. Marketplace segment provides marketplace services for customers within the United States. Digital Wholesale segment provides Dealer-to-Dealer and Instant Max Cash Offer (IMCO) services and products which are sold on the CarOffer platform. The Company operates online marketplaces under the CarGurus brand in Canada and the United Kingdom. It also operates independent brands, the Autolist and PistonHeads online marketplaces in the United States and the United Kingdom.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CarGurus to Announce Q4 Earnings on February 19
- Earnings Announcement: CarGurus (CARG) is set to release its Q4 2023 earnings report on February 19 after market close, with consensus EPS estimates at $0.63, reflecting a 14.5% year-over-year growth, indicating sustained profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $239.07 million, representing a 4.6% year-over-year increase, which highlights CarGurus' ability to maintain stable revenue growth in a competitive automotive market, despite a slight slowdown.
- Historical Performance: Over the past two years, CarGurus has exceeded EPS estimates 100% of the time and has surpassed revenue estimates 63% of the time, demonstrating strong financial forecasting capabilities and market confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen two upward revisions and one downward revision, while revenue estimates have also experienced two upward and one downward revision, indicating some divergence in analysts' outlook on the company's future performance.
See More
CarGurus Stock Outlook Analysis
- Analyst Rating Adjustment: Needham lowered the price target for CarGurus from $44 to $37 while maintaining a Buy rating, indicating that despite concerns about the company being replaced, the analyst believes these fears are exaggerated, reflecting confidence in the company's future performance.
- Brand Campaign Expansion: On February 11, CarGurus announced the expansion of its 'Big Deal' brand campaign, featuring AI-driven innovations designed to simplify online research and comparison, helping consumers make more personalized and confident decisions at dealerships, thereby enhancing user experience.
- Market Position Reinforcement: As the most visited car shopping site, CarGurus continues to invest in innovations to improve consumer transparency and confidence, with CMO Dafna Sarnoff emphasizing the company's commitment to redefining the car shopping experience, which strengthens its competitive position in the market.
- Investment Potential Assessment: While slightly more than half of analysts rate CarGurus as a Buy, with a one-year median price target of $40.50 indicating a 48.13% upside potential, some opinions suggest that certain AI stocks offer greater upside potential and carry less downside risk.
See More
Alta Fox Acquires $44 Million Stake in Resideo Technologies
- New Investment Position: Alta Fox Capital Management disclosed a new position in Resideo Technologies by acquiring 1,266,700 shares in Q4 2026, with an estimated transaction value of $44.49 million, indicating strong confidence in the company's future prospects.
- Significant Asset Allocation: This acquisition accounts for 9.57% of Alta Fox's 13F reportable assets, reflecting the fund's preference for concentrated investment strategies, which may further enhance Resideo's market performance.
- Strong Financial Performance: Resideo reported $1.86 billion in revenue for Q3, a year-over-year increase of approximately 2%, while net income surged to $156 million, up 680%, showcasing a remarkable improvement in profitability.
- Positive Future Outlook: The company updated its 2025 revenue guidance to between $7.43 billion and $7.47 billion, coupled with ongoing gross margin expansion, indicating strong competitive positioning and growth potential in the market.
See More
U.S. Retail Sales Rise 0.6% Month-over-Month in November
- Retail Sales Growth: According to the U.S. Census Bureau, retail sales rose 0.6% month-over-month in November and were up 3.3% year-over-year, exceeding economists' expectations of 0.4%, indicating consumer spending resilience that could positively impact GDP.
- Strong Clothing Sales: Clothing stores saw a 7.5% year-over-year increase, providing positive signals for mall retailers like Gap and Urban Outfitters, suggesting enhanced consumer potential during the holiday season.
- Outstanding Nonstore Retail Performance: The nonstore retail category outperformed with a 7.2% year-over-year increase in November, crucial for e-commerce players like Amazon and Wayfair, reflecting strong demand during the holiday shopping season.
- Underperformance in Auto Dealers: The auto dealer group experienced a 1.1% year-over-year decline in November, indicating challenges for the sector that may affect the performance of related companies.
See More
CarGurus CEO Jason Trevisan to Speak at 28th Annual Growth Conference on January 13
- Executive Participation: CarGurus CEO Jason Trevisan is scheduled to participate in a fireside chat at the 28th Annual Growth Conference on January 13, 2026, showcasing the company's leadership in the automotive shopping sector.
- Investor Relations: The event will feature a live webcast accessible from the company's Investor Relations page, ensuring that investors can stay updated on the latest company developments, thereby enhancing transparency and trust.
- Information Archiving: An archive of the presentation will be available on the company’s website for 90 days post-event, allowing investors who cannot attend live to review the content, further improving information accessibility.
- Market Position: CarGurus is recognized as the most visited automotive shopping site in the U.S., leveraging its extensive inventory selection and dealer network to continuously foster trust and transparency between consumers and dealers.
See More
Tyson and Cargill Reach $87.5M Settlement in Beef Antitrust Case
- Settlement Amount: Tyson Foods and Cargill have agreed to pay a total of $87.5 million to settle an antitrust lawsuit concerning beef price manipulation from 2014 to 2019, which is expected to impact numerous consumer compensation claims.
- Lawsuit Background: Multiple meat manufacturers are accused of entering into non-compete agreements that led to increased beef prices, allowing consumers to file claims for cash settlements by submitting a claim form by June 30, 2026.
- Consumer Options: Consumers have the option to accept cash payments, opt out of the lawsuit, or object to the settlements, with all requests needing to be submitted by March 30, 2026, to protect their rights.
- Court Hearing: A fairness hearing is scheduled for May 12, 2026, in the U.S. District Court for Minnesota, where the judge will decide on the approval of the settlement, potentially affecting the timeline for future compensation payments.
See More
CarGurus to Announce Q4 Earnings on February 19
- Earnings Announcement: CarGurus (CARG) is set to release its Q4 2023 earnings report on February 19 after market close, with consensus EPS estimates at $0.63, reflecting a 14.5% year-over-year growth, indicating sustained profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $239.07 million, representing a 4.6% year-over-year increase, which highlights CarGurus' ability to maintain stable revenue growth in a competitive automotive market, despite a slight slowdown.
- Historical Performance: Over the past two years, CarGurus has exceeded EPS estimates 100% of the time and has surpassed revenue estimates 63% of the time, demonstrating strong financial forecasting capabilities and market confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen two upward revisions and one downward revision, while revenue estimates have also experienced two upward and one downward revision, indicating some divergence in analysts' outlook on the company's future performance.
See More
CarGurus Stock Outlook Analysis
- Analyst Rating Adjustment: Needham lowered the price target for CarGurus from $44 to $37 while maintaining a Buy rating, indicating that despite concerns about the company being replaced, the analyst believes these fears are exaggerated, reflecting confidence in the company's future performance.
- Brand Campaign Expansion: On February 11, CarGurus announced the expansion of its 'Big Deal' brand campaign, featuring AI-driven innovations designed to simplify online research and comparison, helping consumers make more personalized and confident decisions at dealerships, thereby enhancing user experience.
- Market Position Reinforcement: As the most visited car shopping site, CarGurus continues to invest in innovations to improve consumer transparency and confidence, with CMO Dafna Sarnoff emphasizing the company's commitment to redefining the car shopping experience, which strengthens its competitive position in the market.
- Investment Potential Assessment: While slightly more than half of analysts rate CarGurus as a Buy, with a one-year median price target of $40.50 indicating a 48.13% upside potential, some opinions suggest that certain AI stocks offer greater upside potential and carry less downside risk.
See More
Alta Fox Acquires $44 Million Stake in Resideo Technologies
- New Investment Position: Alta Fox Capital Management disclosed a new position in Resideo Technologies by acquiring 1,266,700 shares in Q4 2026, with an estimated transaction value of $44.49 million, indicating strong confidence in the company's future prospects.
- Significant Asset Allocation: This acquisition accounts for 9.57% of Alta Fox's 13F reportable assets, reflecting the fund's preference for concentrated investment strategies, which may further enhance Resideo's market performance.
- Strong Financial Performance: Resideo reported $1.86 billion in revenue for Q3, a year-over-year increase of approximately 2%, while net income surged to $156 million, up 680%, showcasing a remarkable improvement in profitability.
- Positive Future Outlook: The company updated its 2025 revenue guidance to between $7.43 billion and $7.47 billion, coupled with ongoing gross margin expansion, indicating strong competitive positioning and growth potential in the market.
See More
U.S. Retail Sales Rise 0.6% Month-over-Month in November
- Retail Sales Growth: According to the U.S. Census Bureau, retail sales rose 0.6% month-over-month in November and were up 3.3% year-over-year, exceeding economists' expectations of 0.4%, indicating consumer spending resilience that could positively impact GDP.
- Strong Clothing Sales: Clothing stores saw a 7.5% year-over-year increase, providing positive signals for mall retailers like Gap and Urban Outfitters, suggesting enhanced consumer potential during the holiday season.
- Outstanding Nonstore Retail Performance: The nonstore retail category outperformed with a 7.2% year-over-year increase in November, crucial for e-commerce players like Amazon and Wayfair, reflecting strong demand during the holiday shopping season.
- Underperformance in Auto Dealers: The auto dealer group experienced a 1.1% year-over-year decline in November, indicating challenges for the sector that may affect the performance of related companies.
See More
CarGurus CEO Jason Trevisan to Speak at 28th Annual Growth Conference on January 13
- Executive Participation: CarGurus CEO Jason Trevisan is scheduled to participate in a fireside chat at the 28th Annual Growth Conference on January 13, 2026, showcasing the company's leadership in the automotive shopping sector.
- Investor Relations: The event will feature a live webcast accessible from the company's Investor Relations page, ensuring that investors can stay updated on the latest company developments, thereby enhancing transparency and trust.
- Information Archiving: An archive of the presentation will be available on the company’s website for 90 days post-event, allowing investors who cannot attend live to review the content, further improving information accessibility.
- Market Position: CarGurus is recognized as the most visited automotive shopping site in the U.S., leveraging its extensive inventory selection and dealer network to continuously foster trust and transparency between consumers and dealers.
See More
Tyson and Cargill Reach $87.5M Settlement in Beef Antitrust Case
- Settlement Amount: Tyson Foods and Cargill have agreed to pay a total of $87.5 million to settle an antitrust lawsuit concerning beef price manipulation from 2014 to 2019, which is expected to impact numerous consumer compensation claims.
- Lawsuit Background: Multiple meat manufacturers are accused of entering into non-compete agreements that led to increased beef prices, allowing consumers to file claims for cash settlements by submitting a claim form by June 30, 2026.
- Consumer Options: Consumers have the option to accept cash payments, opt out of the lawsuit, or object to the settlements, with all requests needing to be submitted by March 30, 2026, to protect their rights.
- Court Hearing: A fairness hearing is scheduled for May 12, 2026, in the U.S. District Court for Minnesota, where the judge will decide on the approval of the settlement, potentially affecting the timeline for future compensation payments.
See More
