Stocks · Communication Services · Internet Content & Information

CarGurus, Inc. CARG

$30.02 +0.98% Close, Oct 2, 2026 · NASDAQ · Market cap $2.90B

High qualityInexpensive vs sector

Next earnings report: Nov 5, 2026

Scroll or pinch to zoom, drag to move. Daily prices adjusted for splits. Markers: E = earnings (green beat, red miss), S = split, D = dividend.

Three things to know

  1. At 16.3× trailing earnings, the shares trade at the lowest P/E of the company's past five years.
  2. Earnings beat analyst estimates in each of the last 10 quarters (average surprise over the last four: +4.5%).
  3. The diluted share count fell 9.1% in a year, mainly through buybacks.

PromtFinance scores

Each score is a percentile within the Communication Services sector (0–100). Under each score: how the stock ranks in its sector on every component. As of Oct 5, 2026.

Growth48Neutral

How fast revenue, earnings and cash flow are growing.

  • Revenue growth (TTM, YoY)Bottom 50%
  • EPS growth (TTM, YoY)Top 28%
  • FCF growth (TTM, YoY)Top 37%
  • Revenue growth, 3-year CAGRBottom 4%
  • Revenue growth accelerationTop 49%
Quality97Exceptional

Returns on capital, margins, earnings quality and balance-sheet strength.

  • Return on invested capitalTop 1%
  • Gross marginTop 6%
  • Operating marginTop 8%
  • Cash conversion (OCF / net income)Bottom 34%
  • Accruals (lower is better)Top 12%
  • Net debt / EBITDA (lower is better)Top 28%
Value84Strong

How cheap the shares are relative to earnings, cash flow and their own history.

  • Earnings yieldTop 20%
  • Free-cash-flow yieldTop 32%
  • EBITDA / enterprise valueTop 35%
  • Sales / enterprise valueBottom 30%
  • P/E vs own 5-year history (lower is better)Top 11%
Momentum43Weak

Strength and persistence of the price trend, including versus the S&P 500.

  • 12-month return excluding last monthBottom 39%
  • 6-month returnBottom 36%
  • 1-year return vs S&P 500Bottom 36%
  • Distance from 52-week highTop 41%
  • Trend checklist (0–4)Bottom 45%
Revisions82Strong

Earnings surprises and analyst sentiment (estimate-revision history is being collected).

  • Average EPS surprise, last 4 quartersBottom 47%
  • Consecutive EPS beatsTop 9%
  • Share of analysts rating BuyTop 28%
  • Upside to consensus price targetBottom 49%
Stability71Positive

Low volatility, shallow drawdowns, low market sensitivity and modest leverage.

  • Volatility, 60 days (lower is better)Top 39%
  • Maximum drawdown, 3 yearsTop 25%
  • Beta vs S&P 500 (lower is better)Bottom 43%
  • Net debt / EBITDA (lower is better)Top 28%

What changed

Latest four quarters versus the same period a year earlier (growth: versus one quarter earlier).

MeasureBeforeNow
Revenue growth (YoY)5.9%6.0%↑
EPS growth (YoY)334.3%49.6%↓
Gross margin85.5%91.1%↑
Operating margin16.5%25.3%↑
FCF margin26.6%31.8%↑

Fundamental momentum

MeasureNow (TTM)Year / quarter beforeSector rank
Revenue growth (TTM, YoY)6.0%5.9%↑Bottom 50%
EPS growth (TTM, YoY)49.6%334.3%↓Top 28%
Gross margin91.1%85.5%↑Top 6%
Operating margin25.3%16.5%↑Top 8%
Net margin18.1%14.1%↑—
Free-cash-flow margin31.8%26.6%↑—
Return on invested capital42.0%—Top 1%
Revenue growth, 3-year CAGR-17.2%—Bottom 4%

Quality of earnings and balance sheet

Cash conversion (OCF / net income)Above 1× means profits are backed by cash.
1.81×
Accruals (net income − OCF) / assetsLower is better; high accruals can signal weaker earnings quality.
-25.7%
Stock-based compensation / revenueA cost to shareholders through dilution.
5.2%
Receivables growth vs revenue growthReceivables growing much faster than sales can be a warning.
+0.6 pp
Net debt / EBITDABelow 1× is conservative; above 3× is high leverage.
0.23×

Shareholder returns

Dividend yield (dividends paid, TTM)
0.00%
Net buyback yield (TTM)
12.74%
Shareholder yield
12.74%
Share count change, 1 year
-9.1%
Share count change, 3-year CAGR
-7.3%

Shareholder yield = dividends + net buybacks over the last four quarters, divided by market cap.

Based on the four quarters through Jun 30, 2026 (filed Aug 6, 2026).

Earnings and expectations

Earnings momentum

Consecutive EPS beats
10
Beats in the last 8 reports
8 of 8
Average EPS surprise, last 4
+4.5%
Average 2-day reaction, last 8
-0.0%
Positive 20 days after report
5 of 8

Analysts

Consensus price target
$41.17
Target vs current price
+37.1%
Analysts with a rating
24
Share rating Buy or Strong Buy
67%
Consensus rating
Buy

How the stock reacted to recent reports

Report dateEPS surprise2 days5 days20 days60 days
Aug 6, 2026+7.7%-0.1%+1.3%-4.9%—
May 7, 2026+3.6%+2.0%-16.5%-26.8%-1.3%
Feb 19, 2026+3.3%+3.2%+6.9%+20.0%+6.1%
Nov 6, 2025+3.6%-2.7%+4.7%+5.3%-13.4%
Aug 7, 2025+5.6%-1.3%+0.9%+13.7%+7.4%
May 8, 2025+9.5%-1.4%+18.7%+12.0%+11.4%
Feb 20, 2025+10.0%-1.4%-18.2%-21.6%-13.7%
Nov 7, 2024+7.1%+1.4%+11.2%+16.7%+20.4%

Returns from the close before each report. Past reactions do not determine future ones.

Earnings history

Report dateEPSEstimateSurpriseRevenue
Aug 6, 2026$0.66$0.61+7.7%$251.0M
May 7, 2026$0.58$0.56+3.6%$243.6M
Feb 19, 2026$0.63$0.61+3.3%$241.1M
Nov 6, 2025$0.57$0.55+3.6%$238.7M
Aug 7, 2025$0.57$0.54+5.6%$234.0M
May 8, 2025$0.46$0.42+9.5%$225.2M
Feb 20, 2025$0.55$0.50+10.0%$228.5M
Nov 7, 2024$0.45$0.42+7.1%$231.4M

Valuation in context

MultipleNow5-year median5-year percentileSector rank (cheapness)
P/E (trailing)16.3×32.1×0thTop 20%
P/E (forward)11.4×———
EV / EBITDA10.7×——Top 35%
EV / Sales3.04×——Bottom 30%
Free-cash-flow yield10.67%——Top 32%
Earnings yield6.13%——Top 20%

P/E over the past five years

Range 18.8× – 208.8× since Jun 30, 2021. Each point: price on the filing date divided by trailing-twelve-month EPS known then.

What moved the stock over the past year

Price return, 1 year
-20.1%
Earnings per share growth (TTM)
+49.6%
Change in P/E multiple
-22.6%

Most of the move came from earnings growth.

Technical state

Trend checklist

  • ✗ Price above 20-day average
  • ✗ Price above 50-day average
  • ✗ Price above 200-day average
  • ✓ 50-day average above 200-day
  • ✗ MACD histogram positive

Trend quality

Days above the 50-day average
0
Days above the 200-day average
0
50-day average slope (20 days)
-2.2%
200-day average slope (20 days)
-1.0%
Distance from 50-day average
-13.7%
Distance from 200-day average
-10.7%
RSI (14)
32.0
Relative volume
1.11×

Risk and drawdowns

Volatility, 60 days (annualized)
38.8%
Volatility vs own 5-year history
41th percentile · Normal for this stock
Beta vs S&P 500 (2 years, weekly)
1.03
Correlation with S&P 500
0.36
Current drawdown from 1-year high
-23.1%
Maximum drawdown, 3 years
-37.9%

Largest declines in the past six years

From peakTo lowDeclineLengthRecovery
Feb 28, 2022Dec 7, 2022-75.4%196 daysNot yet recovered
Feb 10, 2021Mar 24, 2021-34.8%29 days157 days (Nov 4, 2021)
Dec 7, 2021Jan 27, 2022-25.1%35 days20 days (Feb 25, 2022)
Dec 18, 2020Jan 29, 2021-14.2%27 days5 days (Feb 5, 2021)
Oct 9, 2020Oct 30, 2020-11.9%15 days5 days (Nov 6, 2020)

Declines of 10% or more from a closing high, measured on daily closes.

Financial statements

Market cap
$2.90B
P/E (TTM)
16.3
EPS, diluted (TTM)
$1.84
Revenue (TTM)
$974.3M
52-week range
$26.39 – $41.22
FY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$951.4M$1.66B$914.2M$894.4M$939.0M
Gross profit$657.4M$657.6M$651.5M$738.9M$835.5M
Operating income$148.3M$108.5M$32.6M$13.4M$194.4M
Net income$109.2M$193.8M$31.1M$21.0M$155.9M
EPS (diluted)-$0.00$1.51$0.19$0.20$1.55
Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Revenue$231.4M$228.5M$225.2M$234.0M$238.7M$241.1M$243.6M$251.0M
Net income$22.5M$45.9M$39.0M$22.3M$44.7M$49.8M$32.2M$49.2M
EPS (diluted)$0.21$0.43$0.37$0.22$0.45$0.51$0.34$0.54
FY 2021FY 2022FY 2023FY 2024FY 2025
Operating cash flow$98.3M$256.1M$124.5M$255.5M$295.3M
Capital expenditure-$13.9M-$17.3M-$41.2M-$75.2M-$6.4M
Free cash flow$84.4M$238.8M$83.3M$180.3M$288.9M
Dividends paid$0$0$0$0$0
Net share buybacks$663,000-$14.4M-$208.5M-$141.3M-$351.5M

Cash outflows are shown as negative numbers.

Cash and short-term investments
$122.1M
Total assets
$555.1M
Total liabilities
$290.8M
Total debt
$185.1M
Net debt
$63.0M
Shareholders’ equity
$264.4M

As of Jun 30, 2026 (filed Aug 6, 2026).

Short interest

Shares sold short
7,226,663
Days to cover
8.04
Change vs previous report
+13.2%

FINRA short interest, settlement date Sep 15, 2026.