Analyst Expectations For CarGurus's Future

In the latest quarter, 5 analysts provided ratings for CarGurus CARG, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $44.2, with a high estimate of $46.00 and a low estimate of $42.00. This upward trend is apparent, with the current average reflecting a 2.31% increase from the previous average price target of $43.20.

Understanding Analyst Ratings: A Comprehensive Breakdown

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: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CarGurus. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide 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.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of CarGurus's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on CarGurus analyst ratings.

Unveiling the Story Behind CarGurus

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.

A Deep Dive into CarGurus's Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: CarGurus displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 5.44%. This indicates a notable increase in the company's 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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.73% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): CarGurus's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.81%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): CarGurus's ROA stands out, surpassing industry averages. With an impressive ROA of 2.94%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: CarGurus's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.39.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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