CarGurus, Inc. (CARG) AI Stock Analysis

CarGurus, Inc. operates an online automotive marketplace that serves as a hub for connecting buyers and sellers of both new and used cars across the United States and globally. The platform enables consumers to browse extensive dealer vehicle listings and allows individuals to sell their vehicles directly. By leveraging technology and data-driven insights, CarGurus provides transparent automotive pricing information. Beyond the United States, it operates flagship marketplace platforms in Canada and the United Kingdom, alongside standalone online marketplaces such as Autolist in the United States and PistonHeads in the United Kingdom.

CarGurus grew revenue at an 11.2% CAGR from FY2020 to FY2025. Annual revenue expanded from $951.4M in FY2021 to $1.66B in FY2022, before dropping to $914.2M in FY2023 and $894.4M in FY2024. In FY2025, revenue rebounded 5.0% to $939.0M, while gross margin expanded to 89.0% and operating margin rose to 20.7%, resulting in net income of $155.9M and EPS of $2.13. For the trailing twelve months ending June 30, 2026, revenue stood at $967.3M with an operating margin of 25.3% and EPS of $1.88. For the quarter ending June 30, 2026, revenue grew 13.1% year-over-year, and earnings surged 141.0%.

As of June 30, 2026, CarGurus held $122.1M in cash and short-term investments against total debt of $185.1M, yielding net debt of $63.0M. The company had a current ratio of 1.85 and a debt-to-equity ratio of 0.70 on shareholders' equity of $264.4M. In FY2025, CarGurus generated $295.3M in operating cash flow and $288.9M in free cash flow. Capital expenditures totaled $6.4M, while share buybacks reached $351.9M. Over the past five years, the total share count declined by 22.6%.

CarGurus trades at a forward P/E of 8.5x and an EV-to-EBITDA multiple of 9.7x, compared to the median of its US-listed Communication Services peers of 14.1x and 10.0x, respectively. Its trailing P/E of 16.1x aligns closely with the peer median of 16.2x, while its price-to-sales ratio of 2.8x sits above the peer median of 0.8x. Over the past year, the stock declined 14.1%, trailing the S&P 500 (SPY) gain of 16.8%. Over a five-year span, the stock fell 12.6% while the S&P 500 returned 83.0%.

Wall Street analysts hold 6 Strong Buy, 3 Buy, and 4 Hold ratings on CarGurus, with no Sell or Strong Sell ratings. The mean price target is $41.27, representing a 36.3% premium over the last close of $30.28. For the fiscal year ending December 31, 2026, analysts estimate revenue of $1.01B and EPS of $2.62, representing projected EPS growth of 18.0%. For the next fiscal year, consensus models revenue of $1.11B and EPS of $3.02. CarGurus beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of CarGurus, Inc. (CARG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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