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CarGurus(CARG)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$33.75
09/17/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for CARG

09/17/2026: CARG (1-star) is currently NOT-A-BUY. Pass it for now.

CarGurus is a prominent automotive marketplace platform that utilizes data-driven insights to help consumers and dealers buy and sell vehicles. The company's core strength lies in its widely-used consumer site and proprietary pricing algorithms, which provide a foundation for recurring subscription revenue. Its primary growth story involves evolving from a search portal into an integrated digital retail and wholesale ecosystem through platforms like CarOffer. Investors should monitor risks related to industry cyclicality, execution in the wholesale segment, and competition from other digital platforms. CarGurus may suit investors interested in digital marketplace growth, though it currently lacks dividends and remains sensitive to automotive market volatility.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fitThe company is focused on scaling digital retail and wholesale platforms in a large addressable market.
Momentum investorMixed fitMomentum is conditional on positive market sentiment and sustained growth in marketplace traffic.
Value investorMixed fitValuation fluctuates based on cyclical automotive industry conditions.
Dividend investorWeak fitCarGurus does not pay a dividend as it prioritizes reinvestment.
Low-risk investorWeak fitThe company is subject to cyclical industry volatility and execution risks.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is susceptible to shifts in automotive market sentiment.
Valuation riskMediumMarket pricing depends on growth realization in newer business segments.
Competition risk (AI competition)Medium / highAdvancements in AI search from generalist platforms could disrupt the niche auto search model.
Business qualityMediumThe platform has strong engagement, but faces cyclical industry pressures.
Dividend incomeLow / noneIncome investors will not find dividend payments here.
Execution riskMediumSuccessful integration of wholesale and retail offerings is critical to long-term performance.

Price Behavior

Flat / Range-Bound
PRICE PATH

Flat / Range-Bound

The stock price has been trading within a narrow range with minimal directional movement.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -31.3%
Avg. Invested days 44
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/17/2026

Upturn Scorecard

Upturn Star Rating

CARG receives a 4-star rating, supported by strong unit economics, solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

CARG has solid overall fundamentals (4 stars), with solid financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+643.4%) and strong cash generation (FCF margin 30.8%) are partially offset by moderate revenue growth (+5.0%), modest insider ownership of 3.00%.

Financial Health Rating

CARG's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 27.6%). Operating efficiency is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

Earnings growth is CARG's strongest growth driver at +643.4% FY2025 versus FY2024 (strong, 5 stars). By comparison, free-cash-flow growth (+60.2%, strong) is also strong, while revenue growth (+5.0%, moderate) holds the profile back, so recent growth is not broad-based across the business.

Ownership

Institutional ownership is 108.8% and approximately 96.8% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 3.00% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 13.49%
Vanguard Portfolio Management, LLC 5.20%
Vanguard Capital Management, LLC 3.93%
Wellington Management Company LLP 3.65%
State Street Corp 3.47%

Unit Economics (Per $1K Revenue)

CARG generates approximately $890 of gross profit, $207 of operating income, and $308 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

Effective Tax Rate: 21.18%

Quantitative Style Profile

CARG has a high-quality, liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltSmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 3.09B USD
Price to earnings Ratio 17.86
1Y Target Price 42
Price to earnings Ratio 17.86
1Y Target Price 42
Volume (30-day avg) 920.6K shares
Beta 1.16
52 Weeks Range 26.39 - 41.22
Updated Date 09/17/2026
52 Weeks Range 26.39 - 41.22
Updated Date 09/17/2026
Dividends yield (FY) -
Basic EPS (TTM) 1.94

How Company Makes Money

Business areaWhat it includesRetail investor read
MarketplaceDealer subscription listings and advertising on CarGurus.com.This is the core, stable revenue source that powers the business.
WholesaleCarOffer digital exchange fees and services.This is the growth engine intended to capture more of the dealer transaction cycle.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 17.86
Forward PE 9.68
Enterprise Value 3.15B
Price to Sales(TTM) 3.19
Enterprise Value 3.15B
Price to Sales(TTM) 3.19
Enterprise Value to Revenue 3.26
Enterprise Value to EBITDA 11.01
Shares Outstanding 75.31M
Shares Floating 72.89M
Shares Outstanding 75.31M
Shares Floating 72.89M
Percent Insiders 3
Percent Institutions 108.79

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About CarGurus

Exchange NASDAQ
Headquarters Boston, MA, United States
IPO Launch date 2017-10-12
CEO, CFO, Interim Principal Financial & Accounting Officer, Treasurer & Director Mr. Jason M. Trevisan
Sector Communication Services
Industry Internet Content & Information
Full time employees 1218
Full time employees 1218

CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. The company offers dealer subscription fees, advertising from auto manufacturers and other brand advertisers, and partnerships with financing services companies. It provides an online automotive marketplace that connects large audience of car shoppers with extensive network of dealers, anchoring integrated suite of products. It also offers Digital Deal which allows consumers the option to start their vehicle purchase process online for eligible listings; Dealership Mode which provides consumers with on-the-lot support during visits to participating dealers through the CarGurus app; Sell My Car " Top Dealer Offers which allows dealers to make tailored trade-in offers; and IMV Scan enables dealers to scan a VIN using their smartphone to access IMV data; and PriceVantage, an advanced pricing software powered by machine learning that leverages real-time consumer demand. In addition, the company provides 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.