CarGurus (CARG) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Does CarGurus (CARG) have what it takes to be a top stock pick for momentum investors? Let's find out.
CarGurus (CARG) is well positioned to outperform the market, as it exhibits above-average growth in financials.
CarGurus (CARG) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Shares of CarGurus leaped after reporting strong Q1 results that featured healthy traffic growth, sustaining its position as the #1 used car marketplace. CARG boasts 90% gross margins, strong dealer retention, and rising user traffic, underpinning its robust financial health and growth potential. The company noted that it continues to sign up new dealerships at a higher retention rate, bucking the overall jitteriness in the macroeconomy.
CarGurus, Inc. (NASDAQ:CARG ) Q1 2025 Earnings Conference Call May 8, 2025 5:00 PM ET Company Participants Kirndeep Singh - Vice President, Investor Relations Jason Trevisan - Chief Executive Officer Sam Zales - President & Chief Operating Officer Conference Call Participants Wyatt Swanson - D.A. Davidson Naved Khan - B.
While the top- and bottom-line numbers for CarGurus (CARG) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
CarGurus (CARG) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.32 per share a year ago.
Beyond analysts' top -and-bottom-line estimates for CarGurus (CARG), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
CarGurus (CARG) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
CarGurus' Q4 earnings missed revenue expectations, leading to a ~10% stock drop and signaling a potential correction to value-stock territory. Despite strong dealer additions and profitability improvements, CarGurus' growth is slowing, with revenue growth expected in the mid-single digits for FY25. Rising used car prices and high auto financing rates pose significant risks, potentially dampening demand and impacting future performance.
CarGurus, Inc. is recovering from a rough patch due to the post pandemic market swing, with improving profitability metrics and strong marketplace growth. The platform offers the best ROI for independent dealers, attracting more dealers and increasing inventory. Gross profit margins and EBITDA margins are rising, driven by a favorable revenue mix and marketplace business expansion.