CARG Stock Analysis: Buy, Sell, or Hold?
CARG - CarGurus, Inc. Class A Common Stock
$33.33
-0.22 (-0.66%)
▼
5d:
-6.53%
30d:
-0.6%
90d:
-13.09%
HOLD
LOW Confidence
Analysis Updated: Apr 2, 2026 12:00 AM ET
Earnings: May 14, 2026
Smart Money Accumulation
CARG is down 6.7% this week, but smart money is accumulating calls. Top strike: $37 2026-05-15 with 14 OI. Call ratio: 100% View Scanner →
Strength: 8.3/10
Get Alerted When CARG Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
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
$59.35
Based on 9.8% avg growth
INTRINSIC VALUE TODAY
$36.85
9.6% 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 12.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CARG is currently trading at $33.33, which is considered fair relative to its 30-day fair value range of $30.83 to $34.75. From a valuation perspective, the stock is trading at a discount (Forward PE: 11.4) compared to its historical average (12.8). Remarkably, the market is currently pricing in an annual earnings decline of 3.6% over the next few years. This pessimistic expectation contrasts with the company's recent 19.5% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, CARG is in a downtrend. The price is currently testing key support at $32.37. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (0th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. 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 in a downtrend. The price is currently testing key support at $32.37. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (0th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. 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
FAIR
Fair Price Range
$30.83 -
$34.75
Company Quality Score
55/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
73.8%
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
- NEUTRAL: Price in fair range
- BULLISH: Options cheap (IV 0th percentile)
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($35.79)
- CAUTION: Recommendation downgraded due to -6.5% 5-day decline
Fair Price Analysis
30-Day Fair Range
$30.83 -
$34.75
Current vs Fair Value
FAIR
Expected Move (7 Days)
±$2.36
(7.1%)
Support & Resistance Levels
Support Level
$32.37
Resistance Level
$36.40
Current Trend
Downtrend
Technical data as of
Apr 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
11.43
Wall Street Target
$35.79
(+7.4%)
Revenue Growth (YoY)
5.5%
Earnings Growth (YoY)
19.5%
Profit Margin
17.2%
Valuation Discount vs History
-3.6% cheaper
PE vs Historical
11.4 vs 12.8
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.6%
(market-implied from PE analysis)
1-Year Target
$32.13
(-4%)
2-Year Target
$30.97
(-7%)
3-Year Target
$29.86
(-10%)
3-Yr Target (if PE normalizes)
(PE: 11→13)
$33.43
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.6, Growth: 15.6%)
$92.61
(+178%)
Base:
(SPY PE: 11.4, Growth: 15.6%)
$51.47
(+54%)
Bear:
(PE: 9.7, Growth: 15.6%)
$43.75
(+31%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (17x PE), but valuation improves significantly next year (11x PE) as earnings recover.
Trailing PE: 17.14 | Current EPS (TTM): $1.96
Bull Case
$54.98
(+60%)
Analyst growth 48.8%, PE expands to 18.9
Base Case
$49.98
(+46%)
Market implied 48.8%, PE stable at 17.1
Bear Case
$22.85
(-34%)
Severe decline -20.0%, PE contracts to 14.6
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 11.4 to 12.8
Stabilization Target:
$37.32
(+12.0%)
PE Expansion Potential:
+12.0%
Share & Embed Analysis
Last updated: April 02, 2026 11:50 PM ET
Data refreshes hourly during market hours. Next update: 12:50 AM
Data refreshes hourly during market hours. Next update: 12:50 AM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is CARG showing a specific setup today?
Insider Activity (6 Months)
1
Buys
8
Sells
Net
INSIDERS SELLING
Recent Transactions
Stephen Kaufer
BUY
30766 shares
2026-03-03
Ismail Elshareef
SELL
1645 shares
2026-02-02
Jennifer Ladd Hanson
SELL
2358 shares
2025-12-31
Top Rated Auto & Truck Dealerships Stocks
Top-rated stocks in Auto & Truck Dealerships by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
CVNA
Carvana Co |
BUY
23 analysts |
$429 | 60 HOLD |
|
LAD
Lithia Motors Inc |
STRONG BUY
16 analysts |
$387 | 54 HOLD |
|
MCW
Mister Car Wash, Inc. Co… |
STRONG BUY
17 analysts |
$7 | 55 HOLD |
|
KMX
CarMax Inc |
BUY
19 analysts |
$40 | 50 HOLD |
|
ACVA
ACV Auctions Inc. |
STRONG BUY
14 analysts |
$9 | 49 HOLD |
Advanced CARG Option Strategies
Professional options setups generated by AI based on today's CARG price and gamma walls.
