Expert Outlook: CarGurus Through The Eyes Of 4 Analysts

4 analysts have shared their evaluations of CarGurus CARG during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $26.75, a high estimate of $30.00, and a low estimate of $24.00. This upward trend is evident, with the current average reflecting a 11.46% increase from the previous average price target of $24.00.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of CarGurus's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to CarGurus. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of CarGurus compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of CarGurus's stock. This examination reveals shifts in analysts' expectations over time.

For valuable insights into CarGurus's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on CarGurus analyst ratings.

Get to Know CarGurus Better

CarGurus Inc is a company that acts as an online automotive marketplace connecting buyers and sellers of new and used cars. The company provides three types of marketplace Listing products, Restricted Listings, and Enhanced or Featured Listing through which it offers real-time and historical data analyzing the connections and pricing analysis. The listing platforms offer auto manufacturers and others to buy advertising on the company's site and target consumers based on the make, model, and zip code of the cars. The company operates through two segments namely U.S. Marketplace and Digital Wholesale. It generates majority of revenue from the U.S. Marketplace.

CarGurus's Economic Impact: An Analysis

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Challenges: CarGurus's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -22.19%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: CarGurus's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -10.64%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): CarGurus's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.56%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): CarGurus's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -2.41%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.32.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.