Should You Buy CarGurus Inc (CARG) Today? Analysis, Price Targets, and 2026 Outlook.
Analysis Updated At
2026/01/28
BUY now for a beginner long-term investor. CARG is trading near support (~33.38) and looks oversold (RSI_6 ~23), while fundamentals and Wall Street targets ($44–$45) imply meaningful upside from $33.45. Despite notable insider selling and only modest revenue growth, the sharp improvement in profitability and margins supports a long-term buy at current levels (without waiting for a “perfect” entry).
Technical Analysis
Price/levels: Current price $33.45 is sitting just above S1 support (33.377) and below the pivot (34.561), suggesting the stock is in a weak/discounted area but near an inflection level.
Momentum: MACD histogram is negative (-0.324) but negatively contracting (downtrend pressure is easing). RSI_6 ~23 indicates oversold conditions (often precedes rebounds), aligning with a potentially favorable long-term entry.
Trend structure: Converging moving averages suggests consolidation after weakness rather than a strong uptrend; a reclaim of the pivot (~34.56) would improve the near-term technical picture.
Pattern-based trend odds (short-term): Similar candlestick pattern analysis shows an 80% chance of gains: +1.71% next day, +4.73% next week, +12.57% next month.
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- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
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Analyst Ratings and Price Target Trends
Recent trend: Analysts have been raising price targets while maintaining Buy ratings.
- 2025-12-30: BTIG raised PT to $44 (from $39), reiterated Buy, citing FY27 valuation roll and added value for emerging solutions.
- 2025-12-11: Jefferies raised PT to $45 (from $42), reiterated Buy, while noting broader internet stock risks (investment/margin headwinds, AI disintermediation).
Wall Street pros: upside to targets (~30%+ from current), improving profitability, and optionality from new solutions.
Wall Street cons: slower revenue growth, potential margin pressure from investment needs, and platform/AI competitive threats.
Wall Street analysts forecast CARG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CARG is 42.38 USD with a low forecast of 40 USD and a high forecast of 45 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Wall Street analysts forecast CARG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CARG is 42.38 USD with a low forecast of 40 USD and a high forecast of 45 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Current: 33.420
Current: 33.420
