Last Updated: 09 Nov 2024
Executive Summary
CarGurus (CARG) is a leading online automotive marketplace that connects buyers and sellers of new and used cars. With a market capitalization of $3.39 billion, the company has a strong financial position and is well-positioned for growth. Analysts are bullish on the stock, with a consensus target price of $30.35 and a majority of analysts recommending a buy rating.
Company Overview
CarGurus was founded in 2006 and is headquartered in Cambridge, Massachusetts. The company operates in the United States and internationally. CarGurus' platform allows users to search for cars, compare prices, and connect with dealers. The company also provides a variety of tools and services to help users make informed decisions about buying or selling a car.
Fundamental Analysis
CarGurus' financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 25% over the past three years. In 2023, CarGurus reported revenue of $877 million, up 2% year-over-year. The company's net income was $85 million, up 15% year-over-year.
CarGurus has a strong balance sheet with $450 million in cash and equivalents and no debt. The company's free cash flow was $120 million in 2023.
Technical Analysis
CarGurus' stock price has been trending higher in recent months. The stock broke out of a resistance level at $30 in August 2023 and has since rallied to a high of $37.89. The stock is currently trading at $34.81, above its 50-day and 200-day moving averages.
Short Term Outlook
Analysts are bullish on CarGurus' short-term outlook. The company is expected to continue to benefit from the growing online automotive market. CarGurus is also expected to benefit from its recent expansion into international markets.
Long Term Outlook
Analysts are also bullish on CarGurus' long-term outlook. The company is expected to continue to grow its market share in the online automotive market. CarGurus is also expected to benefit from the growing adoption of electric vehicles.
Analyst Recommendations
The majority of analysts recommend buying CarGurus stock. The consensus target price is $30.35, which represents a potential upside of 13% from the current price.
