CARG Stock Analysis: Buy, Sell, or Hold?
CARG - CarGurus, Inc. Class A Common Stock
$36.24
1.10 (3.13%)
▲
5d:
+16.79%
30d:
+26.54%
90d:
+8.02%
WAIT
LOW Confidence
Analysis Updated: Jul 2, 2026 12:00 AM ET
Earnings: Aug 06, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
⏸️ WAIT FOR BETTER ENTRY: CARG is 13.5% above its trading range ($31.92). Market expects 1.0% annual growth, but current price leaves little margin for error. While momentum could continue, risk/reward favors waiting for a pullback.
⏸️ WAIT FOR BETTER ENTRY: CARG is 13.5% above its trading range ($31.92). Market expects 1.0% annual growth, but current price leaves little margin for error. While momentum could continue, risk/reward favors waiting for a pullback.
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
Trading above historical range
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 $36.24, which is considered extended relative to its 30-day fair value range of $27.47 to $31.92. The stock's valuation (Forward PE: 12.4) is in line with its historical norms (12.1). At these levels, the market is pricing in 1.0% annual earnings growth.
Technical Outlook: Technically, CARG is showing sideways momentum. The price is approaching resistance at $36.35. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 3.1% recently.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, CARG is showing sideways momentum. The price is approaching resistance at $36.35. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 3.1% recently.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$27.47 -
$31.92
Company Quality Score
60/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
44.8%
Protect Your Profits
CARG is technically overbought (RSI 76). Consider hedging now to protect against a potential pullback while keeping your upside.
View Profit Protection PlanAll Signals
- BEARISH: Price significantly overextended (+13.5% above its trading range)
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+3.1%)
- NEUTRAL: Near Wall St target ($37.38)
- BULLISH: Expecting earnings turnaround to 1.0% growth with 14.8% revenue growth
Trading Range Analysis
30-Day Trading Range
$27.47 -
$31.92
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$28.85
Resistance Level
$36.35
Current Trend
Sideways
Technical data as of
Jul 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
12.44
Wall Street Target
$37.38
(+3.2%)
Revenue Growth (YoY)
14.8%
Earnings Growth (YoY)
-8.4%
Profit Margin
15.9%
Valuation Premium vs History
+1.0% premium
PE vs Historical
12.4 vs 12.1
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.0%
(market-implied from PE analysis)
1-Year Target
$36.60
(+1%)
2-Year Target
$36.97
(+2%)
3-Year Target
$37.34
(+3%)
3-Yr Target (if PE normalizes)
(PE: 12→12)
PE COMPRESSION
$36.33
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 16.0%)
$99.05
(+173%)
Base:
(SPY PE: 12.4, Growth: 16.0%)
$56.56
(+56%)
Bear:
(PE: 10.6, Growth: 16.0%)
$48.07
(+33%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (19x PE), but valuation improves significantly next year (12x PE) as earnings recover.
Trailing PE: 18.91 | Current EPS (TTM): $1.90
Bull Case
$60.60
(+67%)
Analyst growth 53.4%, PE expands to 20.8
Base Case
$55.09
(+52%)
Market implied 53.4%, PE stable at 18.9
Bear Case
$24.43
(-33%)
Severe decline -20.0%, PE contracts to 16.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: July 03, 2026 4:57 PM ET
Data refreshes hourly during market hours. Next update: 5:57 PM
Data refreshes hourly during market hours. Next update: 5:57 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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