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CarGurus, Inc. (CARG) Stock Analysis

Temp Headwind edge

HoldModerate Confidence

Consumer Cyclical · Auto & Truck Dealerships

Earnings in 7 days (2026-05-07). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Hold if already holding. Not a fresh buy at $36.49, but acceptable to hold if already in. Reasons: Concentration risk — Customer: dealers; Analyst target reached - limited upside remaining.

CarGurus operates the No. 1 visited automotive shopping site in the US, connecting consumers with dealers in the US, UK, and Canada. Revenue is derived from dealer subscription fees for enhanced marketplace features, advertising from auto manufacturers, and financing service... Read more

$36.49+3.8% A.UpsideScore 5.8/10#3 of 16 Auto & Truck Dealerships
Stop $34.57Target $37.89(resistance)A.R:R -1.3:1
Analyst target$35.96-1.5%12 analysts
$37.89our TP
$36.49price
$35.96mean
$32
$42

Hold if already holding. Not a fresh buy at $36.49, but acceptable to hold if already in. Reasons: Concentration risk — Customer: dealers; Analyst target reached - limited upside remaining. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Maintain position. Not compelling to add more. Score 5.8/10, moderate confidence.

Passes 4/7 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 7d<=7d. Suitability: aggressive.

Thesis

Rewards
Strong earnings beat streak (3/4)
High-quality business
Risks
Concentration risk — Customer: dealers
Analyst target reached - limited upside remaining
Earnings in 7 days (event risk)

Key Metrics

P/E (TTM)18.7
P/E (Fwd)12.6
Mkt Cap$3.3B
EV/EBITDA13.5
Profit Mgn17.2%
ROE43.0%
Rev Growth5.5%
Beta1.32
DividendNone
Rating analysts20

Quality Signals

Piotroski F9/9

Options Flow

P/C0.82neutral
IV79%elevated
Max Pain$55+50.7% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHCustomerdealers
    10-K Item 1A: 'Our business is substantially dependent on our relationships with dealers.'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.0
Obv
1.0
Macd
1.9
Rsi
5.0
Ma Position
9.0
Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.4<4.5A.R:R -1.3=NEGATIVEEARNINGS PROXIMITY 7d<=7dInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARSuitability: Aggressive
RSI
69 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $32.37Resistance $38.66

Price Targets

$35
$38
A.Upside+3.8%
A.R:R-1.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Target reached (-14.3% upside)
! Momentum score 3.4/10 — below 4.5 minimum
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-07 (7d)

Verdict History

reverse chrono — latest first
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Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CARG stock a buy right now?

Hold if already holding. Not a fresh buy at $36.49, but acceptable to hold if already in. Reasons: Concentration risk — Customer: dealers; Analyst target reached - limited upside remaining. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Maintain position. Not compelling to add more. Target $37.89 (+3.8%), stop $34.57 (−5.6%), A.R:R -1.3:1. Score 5.8/10, moderate confidence.

What is the CARG stock price target?

Take-profit target: $37.89 (+3.8% upside). Target $37.89 (+3.8%), stop $34.57 (−5.6%), A.R:R -1.3:1. Stop-loss: $34.57.

What are the risks of investing in CARG?

Concentration risk — Customer: dealers; Analyst target reached - limited upside remaining; Earnings in 7 days (event risk).

Is CARG overvalued or undervalued?

CarGurus, Inc. trades at a P/E of 18.7 (forward 12.6). TrendMatrix value score: 6.2/10. Verdict: Hold.

What do analysts say about CARG?

20 analysts cover CARG with a consensus score of 4.0/5. Average price target: $36.

What does CarGurus, Inc. do?CarGurus operates the No. 1 visited automotive shopping site in the US, connecting consumers with dealers in the US,...

CarGurus operates the No. 1 visited automotive shopping site in the US, connecting consumers with dealers in the US, UK, and Canada. Revenue is derived from dealer subscription fees for enhanced marketplace features, advertising from auto manufacturers, and financing service partnerships.

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