Where CarGurus Stands With Analysts

Ratings for CarGurus CARG were provided by 9 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $29.78, a high estimate of $32.00, and a low estimate of $27.00. This current average reflects an increase of 7.82% from the previous average price target of $27.62.

Deciphering Analyst Ratings: An In-Depth Analysis

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 respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CarGurus. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey 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.

CarGurus: Financial Performance Dissected

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: CarGurus's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -8.78%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: CarGurus's net margin excels beyond industry benchmarks, reaching -31.42%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): CarGurus's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -13.47%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): CarGurus's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -8.46%, the company may face hurdles in achieving optimal financial performance.

Debt Management: CarGurus's debt-to-equity ratio is below the industry average. With a ratio of 0.43, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and 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.

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