CarGurus Inc (CARG) Stock Analysis
Verdict: HOLD
Elite marketplace margins and high FCF yield provide a valuation floor against recent earnings misses and aggressive insider selling.
Investment score: 64/100
Analysis as of
Is CarGurus Inc stock worth reviewing? AI model thesis
The model identifies CarGurus as an undervalued high-margin marketplace. Despite recent insider selling, the FCF yield of 9.5% and low leverage make it a resilient pick in the media/tech sector.
7-factor investment score
- Valuation: 60/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 45/100 (weight 15%)
- Earnings Quality: 50/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 70/100 (weight 15%)
CarGurus Inc opportunities and risks
What speaks for CARG
- Superior Unit Economics
What speaks against CARG
- Insider Selling Pressure
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CARG | 19.2x | 3.1x | 11.8x | 89.9% | 15.6% | 9.5% |
| SNAP | n/a | 1.5x | n/a | 55.8% | -6.7% | 6.5% |
| MTCH | 13.4x | 2.4x | 11.1x | 73.8% | 18.8% | 12.0% |
| RUM | n/a | 31.1x | n/a | 14.7% | -106.9% | -2.5% |
| DJT | n/a | 615.1x | n/a | -26.1% | -29099.0% | 1.8% |
| Peer median | n/a | 16.8x | n/a | 35.2% | -56.8% | 4.1% |
Frequently asked questions about CarGurus Inc (CARG)
Is CARG stock a good investment?
The cached TradeMates AI model rates CarGurus Inc as HOLD with an investment score of 64/100. The model identifies CarGurus as an undervalued high-margin marketplace. Despite recent insider selling, the FCF yield of 9.5% and low leverage make it a resilient pick in the media/tech sector. This is algorithmic model output, not personal investment advice.
Is CARG stock a buy?
The TradeMates model verdict for CARG is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.