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Upturn AI SWOT - About
CARG 
CarGurus (CARG)
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Upturn Advisory Summary
08/28/2025: CARG (1-star) is currently NOT-A-BUY. Pass it for now.
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 -10.45% | Avg. Invested days 55 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/28/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.43B USD | Price to earnings Ratio 27.68 | 1Y Target Price 38.67 |
Price to earnings Ratio 27.68 | 1Y Target Price 38.67 | ||
Volume (30-day avg) 13 | Beta 1.42 | 52 Weeks Range 24.65 - 41.33 | Updated Date 08/29/2025 |
52 Weeks Range 24.65 - 41.33 | Updated Date 08/29/2025 | ||
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 2025-08-07 | When - | Estimate 0.54 | Actual 0.57 |
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 27.68 | Forward PE 16.23 | Enterprise Value 3376543297 | Price to Sales(TTM) 3.74 |
Enterprise Value 3376543297 | Price to Sales(TTM) 3.74 | ||
Enterprise Value to Revenue 3.67 | Enterprise Value to EBITDA 15.82 | Shares Outstanding 85043904 | Shares Floating 83270365 |
Shares Outstanding 85043904 | Shares Floating 83270365 | ||
Percent Insiders 1.96 | Percent Institutions 100.53 |
Upturn AI SWOT
CarGurus
Company Overview
History and Background
CarGurus was founded in 2006 by Langley Steinert, co-founder of TripAdvisor. It initially started as a blog offering car-shopping advice and later evolved into an online automotive marketplace connecting buyers and sellers. The company went public in 2017.
Core Business Areas
- Marketplace: The core business involves connecting car shoppers with dealers through its online marketplace. It offers new and used car listings, dealer reviews, pricing analysis, and other related services.
- Digital Marketing Solutions: CarGurus provides digital marketing solutions for automotive dealerships, including targeted advertising, inventory management tools, and website services.
- Wholesale: CarOffer, is a digital wholesale marketplace that facilitates transactions between automotive dealers.
Leadership and Structure
Jason Trevisan is the CEO. The company has a traditional hierarchical structure with departments focusing on engineering, product development, sales, marketing, and finance.
Top Products and Market Share
Key Offerings
- Used Car Listings: CarGurus' core offering is its used car marketplace. The market share data for Q4 2023 indicates CarGurus holds a substantial portion of the used car online search market. Competitors include AutoTrader, Cars.com, and Edmunds. Third party data suggests CarGurus captures between 20 and 25% of online used car shopping engagement.
- New Car Listings: CarGurus also lists new cars for sale. Competitors include AutoTrader, Cars.com, and Edmunds. Revenue from this is significantly less than from Used car listings.
- Digital Advertising Solutions: These solutions help dealers increase their visibility and generate leads. These solutions generate a substantial portion of revenue for Cargurus.
- CarOffer: CarOffer is a digital wholesale marketplace that connects dealers to facilitate transactions. This segment is a growth driver and contributes to overall revenue.
Market Dynamics
Industry Overview
The automotive marketplace industry is highly competitive, rapidly evolving. Key trends include the increasing importance of online car shopping, the growth of electric vehicles, and the rise of digital marketing solutions for dealerships.
Positioning
CarGurus is positioned as a data-driven marketplace that provides transparency and insights to car shoppers. Its competitive advantage lies in its pricing analysis and user reviews.
Total Addressable Market (TAM)
The TAM for online automotive advertising and used car sales is estimated to be in the hundreds of billions of dollars. CarGurus is positioned to capture a significant portion of this TAM by expanding its marketplace and digital marketing solutions.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Large user base
- Data-driven approach
- Pricing transparency
- User-friendly platform
Weaknesses
- Reliance on dealer relationships
- Competition from larger players
- Sensitivity to economic downturns
- Dependence on search engine rankings
Opportunities
- Expansion into new markets
- Growth of electric vehicle market
- Development of new digital marketing solutions
- Increased adoption of online car buying
- Further integration of CarOffer platform
Threats
- Intense competition
- Changes in search engine algorithms
- Economic recession
- Disruptive technologies
- Shift in consumer preferences
Competitors and Market Share
Key Competitors
- CAR
- TRUE
- KMX
- ABNB
Competitive Landscape
CarGurus faces intense competition from established players and new entrants. Its competitive advantage lies in its pricing transparency and user reviews. Competitors tend to be larger companies that compete with a variety of car sale tools and websites.
Major Acquisitions
CarOffer
- Year: 2021
- Acquisition Price (USD millions): 348
- Strategic Rationale: The acquisition of CarOffer allowed CarGurus to expand into the wholesale market and provide additional value to its dealer partners.
Growth Trajectory and Initiatives
Historical Growth: CarGurus has experienced substantial growth in revenue and user base over the past decade, driven by the increasing adoption of online car shopping.
Future Projections: Analyst projections indicate continued growth for CarGurus, driven by its expansion into new markets and its focus on digital marketing solutions. These figures must come from a live updated source
Recent Initiatives: Recent initiatives include the integration of CarOffer platform, the launch of new digital marketing solutions, and the expansion into new geographic markets.
Summary
CarGurus is a strong player in the online automotive marketplace, leveraging data and transparency to attract users. Its strengths lie in its brand recognition, large user base, and data-driven approach. However, it faces intense competition and relies on dealer relationships. Future growth depends on its ability to innovate and expand into new markets.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates
- Third-party market research data
Disclaimers:
This analysis is based on publicly available information and analyst estimates. It is not financial advice and should not be used as the sole basis for investment decisions.
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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