Cargurus Stock Buy Hold or Sell Recommendation
| CARG Stock | USD 35.62 0.11 0.31% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding CarGurus is 'Buy'. Macroaxis provides CarGurus buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CarGurus positions.
Check out CarGurus Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in CarGurus Stock please use our How to Invest in CarGurus guide. Note, we conduct extensive research on individual companies such as CarGurus and provide practical buy, sell, or hold advice based on investors' constraints. CarGurus. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.
CarGurus |
Execute CarGurus Buy or Sell Advice
The CarGurus recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on CarGurus. Macroaxis does not own or have any residual interests in CarGurus or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute CarGurus' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
CarGurus Trading Alerts and Improvement Suggestions
| Over 96.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Online Marketplace Stocks Q3 In Review CarGurus Vs Peers |
CarGurus Returns Distribution Density
The distribution of CarGurus' historical returns is an attempt to chart the uncertainty of CarGurus' future price movements. The chart of the probability distribution of CarGurus daily returns describes the distribution of returns around its average expected value. We use CarGurus price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of CarGurus returns is essential to provide solid investment advice for CarGurus.
| Mean Return | 0.38 | Value At Risk | -2.48 | Potential Upside | 3.59 | Standard Deviation | 1.81 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of CarGurus historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
CarGurus Stock Institutional Investors
| Shares | Vitruvian Partners | 2024-06-30 | 1.4 M | Thrivent Financial For Lutherans | 2024-09-30 | 1.3 M | Fort Washington Investment Advisors Inc | 2024-09-30 | 1.2 M | Prevatt Capital Ltd | 2024-06-30 | 1.1 M | Select Equity Group Lp | 2024-09-30 | 1.1 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1 M | Sunriver Management Llc | 2024-09-30 | 1 M | Northern Trust Corp | 2024-09-30 | 893 K | Glenmede Trust Co Na | 2024-09-30 | 780 K | Blackrock Inc | 2024-06-30 | 12.7 M | Vanguard Group Inc | 2024-09-30 | 9.5 M |
CarGurus Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 305K | 10.4M | (17.3M) | 14.4M | 2.0M | 2.1M | |
| Investments | 11.1M | 11.7M | 10M | 90M | (119.8M) | (113.9M) | |
| Change In Cash | 33.2M | 130.2M | 47.4M | 235.9M | (190.2M) | (180.7M) | |
| Free Cash Flow | 55.9M | 149.2M | 84.4M | 238.8M | 83.3M | 84.6M | |
| Depreciation | 7.8M | 11.3M | 40.5M | 45.3M | 48.5M | 50.9M | |
| Other Non Cash Items | 8.8M | 13.6M | 16.7M | 13.3M | 12.2M | 8.7M | |
| Capital Expenditures | 14.2M | 7.5M | 13.9M | 17.3M | 41.2M | 43.3M | |
| Net Income | 42.1M | 77.6M | 110.4M | 79.0M | 22.1M | 21.0M | |
| End Period Cash Flow | 70.7M | 200.9M | 248.3M | 484.1M | 293.9M | 185.7M | |
| Change To Netincome | 31.0M | 69.3M | 63.7M | 34.8M | 40.0M | 25.9M | |
| Change Receivables | (9.6M) | 3.9M | (174.8M) | 153.0M | 175.9M | 184.7M |
CarGurus Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to CarGurus or Interactive Media & Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that CarGurus' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a CarGurus stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.22 | |
β | Beta against Dow Jones | 1.26 | |
σ | Overall volatility | 1.82 | |
Ir | Information ratio | 0.14 |
CarGurus Volatility Alert
CarGurus has relatively low volatility with skewness of 0.23 and kurtosis of 0.12. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CarGurus' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact CarGurus' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.CarGurus Fundamentals Vs Peers
Comparing CarGurus' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze CarGurus' direct or indirect competition across all of the common fundamentals between CarGurus and the related equities. This way, we can detect undervalued stocks with similar characteristics as CarGurus or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of CarGurus' fundamental indicators could also be used in its relative valuation, which is a method of valuing CarGurus by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare CarGurus to competition |
| Fundamentals | CarGurus | Peer Average |
| Return On Equity | -0.0774 | -0.31 |
| Return On Asset | 0.0563 | -0.14 |
| Profit Margin | (0.05) % | (1.27) % |
| Operating Margin | 0.19 % | (5.51) % |
| Current Valuation | 3.64 B | 16.62 B |
| Shares Outstanding | 87.95 M | 571.82 M |
| Shares Owned By Insiders | 1.63 % | 10.09 % |
| Shares Owned By Institutions | 96.22 % | 39.21 % |
| Number Of Shares Shorted | 5.49 M | 4.71 M |
| Price To Earning | 19.41 X | 28.72 X |
| Price To Book | 7.64 X | 9.51 X |
| Price To Sales | 4.16 X | 11.42 X |
| Revenue | 914.24 M | 9.43 B |
| Gross Profit | 657.72 M | 27.38 B |
| EBITDA | 111.98 M | 3.9 B |
| Net Income | 22.05 M | 570.98 M |
| Cash And Equivalents | 404.43 M | 2.7 B |
| Cash Per Share | 3.40 X | 5.01 X |
| Total Debt | 194.39 M | 5.32 B |
| Debt To Equity | 0.09 % | 48.70 % |
| Current Ratio | 4.06 X | 2.16 X |
| Book Value Per Share | 4.68 X | 1.93 K |
| Cash Flow From Operations | 124.53 M | 971.22 M |
| Short Ratio | 12.35 X | 4.00 X |
| Earnings Per Share | (0.45) X | 3.12 X |
| Price To Earnings To Growth | 1.47 X | 4.89 X |
| Target Price | 38.27 | |
| Number Of Employees | 1.34 K | 18.84 K |
| Beta | 1.56 | -0.15 |
| Market Capitalization | 3.69 B | 19.03 B |
| Total Asset | 918.93 M | 29.47 B |
| Retained Earnings | 354.15 M | 9.33 B |
| Working Capital | 276.01 M | 1.48 B |
Note: Disposition of 9544 shares by Zachary Hallowell of CarGurus at 35.41 subject to Rule 16b-3 [view details]
CarGurus Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as CarGurus . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About CarGurus Buy or Sell Advice
When is the right time to buy or sell CarGurus? Buying financial instruments such as CarGurus Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out CarGurus Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in CarGurus Stock please use our How to Invest in CarGurus guide.You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Is Interactive Media & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CarGurus. If investors know CarGurus will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CarGurus listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.265 | Earnings Share (0.45) | Revenue Per Share 8.361 | Quarterly Revenue Growth 0.054 | Return On Assets 0.0563 |
The market value of CarGurus is measured differently than its book value, which is the value of CarGurus that is recorded on the company's balance sheet. Investors also form their own opinion of CarGurus' value that differs from its market value or its book value, called intrinsic value, which is CarGurus' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CarGurus' market value can be influenced by many factors that don't directly affect CarGurus' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CarGurus' value and its price as these two are different measures arrived at by different means. Investors typically determine if CarGurus is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CarGurus' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.