Cargurus Stock Buy Hold or Sell Recommendation
CARG Stock | USD 23.22 0.31 1.35% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding CarGurus is 'Cautious Hold'. 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. The advice algorithm takes into account all of CarGurus' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting CarGurus' buy or sell advice are summarized below:
Real Value 22.7 | Target Price 22.5 | Hype Value 23.22 | Market Value 23.22 | Naive Value 24.12 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell CarGurus given historical horizon and risk tolerance towards CarGurus. When Macroaxis issues a 'buy' or 'sell' recommendation for CarGurus, the advice is generated through an automated system that utilizes algorithms and statistical models.
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
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
CarGurus Trading Alerts and Improvement Suggestions
CarGurus is unlikely to experience financial distress in the next 2 years | |
CarGurus has a strong financial position based on the latest SEC filings | |
Over 97.0% of the company shares are held by institutions such as insurance companies | |
Latest headline from simplywall.st: Is CarGurus, Inc. Potentially Undervalued |
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 | 0.05 | Value At Risk | -3.1 | Potential Upside | 3.11 | Standard Deviation | 2.12 |
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
Have you ever been surprised when a price of an equity instrument such as CarGurus is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading CarGurus backward and forwards among themselves. CarGurus' institutional investor refers to the entity that pools money to purchase CarGurus' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares | Dragoneer Investment Group, Llc | 2023-12-31 | 1.8 M | Man Group Plc | 2023-12-31 | 1.6 M | Vitruvian Partners | 2023-12-31 | 1.4 M | Thrivent Financial For Lutherans | 2023-12-31 | 1.3 M | Northern Trust Corp | 2023-12-31 | 1 M | Prevatt Capital Ltd | 2023-12-31 | 1000 K | Charles Schwab Investment Management Inc | 2023-12-31 | 924.7 K | Select Equity Group Lp | 2023-12-31 | 908.5 K | Fort Washington Investment Advisors Inc | 2023-12-31 | 839.9 K | Blackrock Inc | 2023-12-31 | 15 M | Vanguard Group Inc | 2023-12-31 | 10.1 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 NYSE Composite | -0.12 | |
β | Beta against NYSE Composite | 2.06 | |
σ | Overall volatility | 2.13 | |
Ir | Information ratio | -0.02 |
CarGurus Volatility Alert
CarGurus currently demonstrates below-average downside deviation. It has Information Ratio of -0.02 and Jensen Alpha 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 | 0.0318 | -0.31 |
Return On Asset | 0.0222 | -0.14 |
Profit Margin | 0.03 % | (1.27) % |
Operating Margin | (0.1) % | (5.51) % |
Current Valuation | 2.34 B | 16.62 B |
Shares Outstanding | 88.95 M | 571.82 M |
Shares Owned By Insiders | 2.65 % | 10.09 % |
Shares Owned By Institutions | 97.35 % | 39.21 % |
Number Of Shares Shorted | 7.2 M | 4.71 M |
Price To Earning | 19.41 X | 28.72 X |
Price To Book | 3.89 X | 9.51 X |
Price To Sales | 2.63 X | 11.42 X |
Revenue | 914.24 M | 9.43 B |
Gross Profit | 657.72 M | 27.38 B |
EBITDA | 81.1 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 | 5.70 X | 1.93 K |
Cash Flow From Operations | 124.53 M | 971.22 M |
Short Ratio | 6.33 X | 4.00 X |
Earnings Per Share | 0.19 X | 3.12 X |
Price To Earnings To Growth | 1.35 X | 4.89 X |
Target Price | 25.18 | |
Number Of Employees | 1.34 K | 18.84 K |
Beta | 1.59 | -0.15 |
Market Capitalization | 2.49 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 17668 shares by Samuel Zales of CarGurus at 0.16 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.2021 | 2022 | 2023 | 2024 (projected) | Other Current Liabilities | 78.6M | 39.2M | 33.7M | 29.7M | Total Assets | 931.6M | 927.1M | 918.9M | 525.1M |
Use Investing Ideas to Build Portfolios
In addition to having CarGurus in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Defense Thematic Idea Now
Defense
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Defense theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Defense Theme or any other thematic opportunities.
View All Next | Launch |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Complementary Tools for CarGurus Stock analysis
When running CarGurus' price analysis, check to measure CarGurus' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CarGurus is operating at the current time. Most of CarGurus' value examination focuses on studying past and present price action to predict the probability of CarGurus' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CarGurus' price. Additionally, you may evaluate how the addition of CarGurus to your portfolios can decrease your overall portfolio volatility.
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |
Is CarGurus' industry 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 0.166 | Earnings Share 0.19 | Revenue Per Share 8.073 | Quarterly Revenue Growth (0.22) | Return On Assets 0.0222 |
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.