In the last three months, 6 analysts have published ratings on CarGurus (NASDAQ:CARG), offering a diverse range of perspectives from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 3 | 2 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 2 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $27.25, along with a high estimate of $30.00 and a low estimate of $25.00. This current average reflects an increase of 9.0% from the previous average price target of $25.00.
Deciphering Analyst Ratings: An In-Depth Analysis
The standing of CarGurus among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Nicholas Jones | JMP Securities | Announces | Market Outperform | $30.00 | - |
| Tom White | DA Davidson | Raises | Neutral | $25.50 | $22.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $29.00 | $27.00 |
| Brad Erickson | RBC Capital | Raises | Outperform | $27.00 | $26.00 |
| Chris Pierce | Needham | Raises | Buy | $25.00 | $24.00 |
| Kunal Madhukar | UBS | Raises | Neutral | $27.00 | $26.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to CarGurus. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CarGurus compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for CarGurus's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
To gain a panoramic view of CarGurus's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on CarGurus analyst ratings.
Discovering CarGurus: A Closer Look
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.
Unraveling the Financial Story of CarGurus
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Negative Revenue Trend: Examining CarGurus's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -6.97% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: CarGurus's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.87% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): CarGurus's ROE excels beyond industry benchmarks, reaching 3.59%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): CarGurus's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.38% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.34.
Understanding the Relevance of Analyst Ratings
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.
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.