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Upturn AI SWOT - About
CARG 
CarGurus (CARG)
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Upturn Advisory Summary
09/17/2025: 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 $38.67
1 Year Target Price $38.67
| 6 | Strong Buy |
| 3 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -6.98% | Avg. Invested days 49 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/17/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.65B USD | Price to earnings Ratio 29.4 | 1Y Target Price 38.67 |
Price to earnings Ratio 29.4 | 1Y Target Price 38.67 | ||
Volume (30-day avg) 13 | Beta 1.54 | 52 Weeks Range 24.65 - 41.33 | Updated Date 09/17/2025 |
52 Weeks Range 24.65 - 41.33 | Updated Date 09/17/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.25 |
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 14.12% | Operating Margin (TTM) 24.53% |
Management Effectiveness
Return on Assets (TTM) 16.95% | Return on Equity (TTM) 29.25% |
Valuation
Trailing PE 29.4 | Forward PE 15.02 | Enterprise Value 3565137656 | Price to Sales(TTM) 3.97 |
Enterprise Value 3565137656 | Price to Sales(TTM) 3.97 | ||
Enterprise Value to Revenue 3.88 | Enterprise Value to EBITDA 16.7 | Shares Outstanding 85043939 | Shares Floating 83271358 |
Shares Outstanding 85043939 | Shares Floating 83271358 | ||
Percent Insiders 1.96 | Percent Institutions 100.67 |
Upturn AI SWOT
CarGurus
Company Overview
History and Background
CarGurus was founded in 2006 by Langley Steinert, also a co-founder of TripAdvisor. It started as a blog about car deals and reviews, evolving into an online marketplace for buying and selling new and used cars. The company went public in October 2017.
Core Business Areas
- Marketplace: Connects car shoppers with dealers through its online marketplace, providing listings, pricing data, and dealer reviews.
- Digital Marketing Solutions: Offers advertising and marketing services to dealerships, helping them increase visibility and drive sales.
- Wholesale: Facilitates wholesale car transactions between dealers.
Leadership and Structure
Jason Trevisan is the CEO. The company has a typical corporate structure with departments for engineering, marketing, sales, finance, and product management.
Top Products and Market Share
Key Offerings
- Estimated Users: Approximately 31.4 million average monthly unique users (Q1 2024).
- Used Car Listings: CarGurus provides a large inventory of used car listings from dealerships and private sellers. Competitors include AutoTrader, Cars.com, and Facebook Marketplace. Revenue is generated through dealer subscriptions and advertising. Data on specific market share for used listings is difficult to pinpoint, but CarGurus is considered a major player.
- Market Share: New car market share data is fragmented across numerous websites.
- New Car Listings: Offers new car listings, pricing information, and tools for comparing different models. Competitors are similar to used car listings (AutoTrader, Cars.com).
- Dealer Marketing Solutions: Provides advertising, lead generation, and inventory management tools to car dealerships. Competitors include CDK Global, Dealer.com, and Sincro.
- Estimated Revenue: Majority of CarGurus's revenue is derived from subscriptions and advertising fees from dealers.
Market Dynamics
Industry Overview
The online automotive marketplace is competitive and rapidly evolving, driven by increasing consumer preference for online shopping and advancements in technology. The industry is also affected by economic conditions, interest rates, and new vehicle production levels.
Positioning
CarGurus positions itself as a data-driven marketplace offering transparency and value to both car shoppers and dealers. Its focus on pricing analysis and dealer ratings helps differentiate it from competitors.
Total Addressable Market (TAM)
The TAM for the online automotive retail and advertising market is estimated to be in the tens of billions of dollars. CarGurus is well-positioned to capture a significant share of this market due to its strong brand recognition and user base.
Upturn SWOT Analysis
Strengths
- Strong Brand Recognition
- Large User Base
- Data-Driven Approach
- Extensive Inventory
- Positive Dealer Reviews
Weaknesses
- Reliance on Dealer Subscriptions
- Competition from Larger Players
- Dependence on Automotive Industry Health
- Potential for Disruptive Technologies
- Varied Dealer Satisfaction Scores
Opportunities
- Expansion into New Markets
- Growth in Electric Vehicle Sales
- Development of New Products and Services
- Partnerships with Automotive Manufacturers
- Enhanced Data Analytics Capabilities
Threats
- Economic Downturn
- Increased Competition
- Changes in Consumer Preferences
- New Technologies Disrupting the Market
- Data Security Breaches
Competitors and Market Share
Key Competitors
- KMX
- ACVA
- CARS
Competitive Landscape
CarGurus has an advantage in pricing transparency and data analytics. Competitors like AutoTrader have stronger brand recognition. KMX is a different business model (physical + online)
Major Acquisitions
CarOffer
- Year: 2021
- Acquisition Price (USD millions): 800
- Strategic Rationale: To expand its wholesale offerings and provide dealers with a more comprehensive suite of solutions.
Growth Trajectory and Initiatives
Historical Growth: CarGurus has experienced strong growth in revenue and user base over the past decade, driven by the increasing adoption of online car shopping.
Future Projections: Analysts predict continued revenue growth for CarGurus, driven by increased dealer adoption of its marketing solutions and expansion into new markets. EPS is expected to fluctuate based on investment strategy.
Recent Initiatives: Expanding digital wholesale offerings. Strategic investments in artificial intelligence and machine learning to enhance the user experience and personalize search results.
Summary
CarGurus is a strong player in the online automotive marketplace, with a large user base and data-driven approach. Its financial performance is improving, and the company is focused on growth through strategic initiatives and acquisitions. Competition remains a challenge, and economic conditions could impact future performance. CarGurus needs to differentiate itself with enhanced features.
Peer Comparison
Sources and Disclaimers
Data Sources:
- CarGurus Investor Relations
- SEC Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market conditions are subject to change, and past performance is not indicative of future results.
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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