CARG Stock Analysis: Buy, Sell, or Hold?
CARG - CarGurus, Inc. Class A Common Stock
$32.89
-1.29 (-3.77%)
▼
5d:
-7.77%
30d:
+17.05%
90d:
-3.69%
HOLD
MODERATE Confidence
Analysis Updated: Jul 10, 2026 12:00 AM ET
Earnings: Aug 06, 2026
23d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: CARG shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: CARG shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$56.57
Based on 10.0% avg growth
INTRINSIC VALUE TODAY
$35.13
6.4% 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 $32.89, which is considered extended relative to its 30-day fair value range of $27.77 to $33.76. The stock's valuation (Forward PE: 11.7) is in line with its historical norms (12.1). Remarkably, the market is currently pricing in an annual earnings decline of 0.9% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, CARG is showing sideways momentum. Immediate support is located at $30.86, while resistance sits at $36.49. Short-term momentum is weak, with the stock down 3.8% recently.
Market Sentiment: CARG has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, CARG is showing sideways momentum. Immediate support is located at $30.86, while resistance sits at $36.49. Short-term momentum is weak, with the stock down 3.8% recently.
Market Sentiment: CARG has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$27.77 -
$33.76
Company Quality Score
63/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
52.4%
Protect Your Profits
Holding CARG? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-3.8%)
- NEUTRAL: Near Wall St target ($37.38)
- CAUTION: 5-day price weakness (-7.8%) - monitor closely
Trading Range Analysis
30-Day Trading Range
$27.77 -
$33.76
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$30.86
Resistance Level
$36.49
Current Trend
Sideways
Technical data as of
Jul 10, 2026
Fundamental Context
Forward P/E (Next Year Est.)
11.73
Wall Street Target
$37.38
(+9.4%)
Revenue Growth (YoY)
14.8%
Earnings Growth (YoY)
-8.4%
Profit Margin
15.9%
Valuation Discount vs History
-0.9% cheaper
PE vs Historical
11.7 vs 12.1
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.9%
(market-implied from PE analysis)
1-Year Target
$33.87
(-1%)
2-Year Target
$33.57
(-2%)
3-Year Target
$33.27
(-3%)
3-Yr Target (if PE normalizes)
(PE: 12→12)
$34.32
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 16.0%)
$99.05
(+190%)
Base:
(SPY PE: 11.7, Growth: 16.0%)
$53.34
(+56%)
Bear:
(PE: 10.0, Growth: 16.0%)
$45.34
(+33%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (18x PE), but valuation improves significantly next year (12x PE) as earnings recover.
Trailing PE: 18.35 | Current EPS (TTM): $1.90
Bull Case
$58.81
(+72%)
Analyst growth 53.4%, PE expands to 20.2
Base Case
$53.46
(+56%)
Market implied 53.4%, PE stable at 18.4
Bear Case
$23.70
(-31%)
Severe decline -20.0%, PE contracts to 15.6
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 11.7 to 12.1
Stabilization Target:
$35.26
(+3.2%)
PE Expansion Potential:
+3.2%
Share & Embed Analysis
Last updated: July 13, 2026 11:11 AM ET
Data refreshes hourly during market hours. Next update: 12:11 PM
Data refreshes hourly during market hours. Next update: 12:11 PM
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Technical Signals Check
Is CARG showing a specific setup today?
Insider Activity (6 Months)
1
Buys
5
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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