CARG Stock Analysis: Buy, Sell, or Hold?
CARG - CarGurus, Inc. Class A Common Stock
$30.08
0.06 (0.20%)
▲
5d:
+10.71%
30d:
+6.63%
90d:
-10.48%
BUY
HIGH Confidence
Analysis Updated: Jun 22, 2026 12:00 AM ET
Earnings: Aug 06, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: CARG trading at deep discount. Market pricing in -5.1% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: CARG trading at deep discount. Market pricing in -5.1% annual earnings decline, creating value opportunity for patient investors.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$56.41
Based on 10.0% avg growth
INTRINSIC VALUE TODAY
$35.03
14.1% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 12.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CARG is currently trading at $30.08, which is considered slightly high relative to its 30-day fair value range of $27.50 to $30.22. From a valuation perspective, the stock is trading at a discount (Forward PE: 10.3) compared to its historical average (12.1). Remarkably, the market is currently pricing in an annual earnings decline of 5.1% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, CARG is showing sideways momentum. The price is approaching resistance at $30.79. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CARG has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $37.38 (+24.3%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, CARG is showing sideways momentum. The price is approaching resistance at $30.79. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CARG has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $37.38 (+24.3%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Historical Trading Range
$27.50 -
$30.22
Company Quality Score
56/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
76.2%
All Signals
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 24.3% below Wall St target ($37.38)
Trading Range Analysis
30-Day Trading Range
$27.50 -
$30.22
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$26.93
Resistance Level
$30.79
Current Trend
Sideways
Technical data as of
Jun 22, 2026
Fundamental Context
Forward P/E (Next Year Est.)
10.35
Wall Street Target
$37.38
(+24.3%)
Revenue Growth (YoY)
14.8%
Earnings Growth (YoY)
-8.4%
Profit Margin
15.9%
Valuation Discount vs History
-5.1% cheaper
PE vs Historical
10.4 vs 12.1
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.1%
(market-implied from PE analysis)
1-Year Target
$28.55
(-5%)
2-Year Target
$27.09
(-10%)
3-Year Target
$25.71
(-15%)
3-Yr Target (if PE normalizes)
(PE: 10→12)
$30.05
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 16.0%)
$98.74
(+228%)
Base:
(SPY PE: 10.4, Growth: 16.0%)
$46.93
(+56%)
Bear:
(PE: 8.8, Growth: 16.0%)
$39.89
(+33%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (16x PE), but valuation improves significantly next year (10x PE) as earnings recover.
Trailing PE: 15.97 | Current EPS (TTM): $1.90
Bull Case
$51.05
(+70%)
Analyst growth 52.9%, PE expands to 17.6
Base Case
$46.41
(+54%)
Market implied 52.9%, PE stable at 16.0
Bear Case
$20.63
(-31%)
Severe decline -20.0%, PE contracts to 13.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 10.4 to 12.1
Stabilization Target:
$35.16
(+16.9%)
PE Expansion Potential:
+16.9%
Share & Embed Analysis
Last updated: June 23, 2026 8:44 AM ET
Data refreshes hourly during market hours. Next update: 9:44 AM
Data refreshes hourly during market hours. Next update: 9:44 AM
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Technical Signals Check
Is CARG showing a specific setup today?
Insider Activity (6 Months)
1
Buys
6
Sells
Net
INSIDERS SELLING
Recent Transactions
Jennifer Ladd Hanson
SELL
567 shares
2026-04-02
Matthew Todd Quinn
SELL
4341 shares
2026-04-02
Dafna Sarnoff
SELL
5445 shares
2026-04-02
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Professional options setups generated by AI based on today's CARG price and gamma walls.
