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CarGurus Inc. (NASDAQ:CARG) stock soared to a 52-week high of $39.16, reflecting a robust performance that has caught the attention of investors. According to InvestingPro data, the company maintains a "GOOD" financial health score, with 8 analysts recently revising their earnings expectations upward. The online automotive marketplace has seen its shares surge over the past year, with a remarkable 1-year change of 71.62%. Management's aggressive share buyback program and strong balance sheet, with cash exceeding debt, have supported this growth. This impressive rally underscores the company's growing influence in the digital car buying and selling space, as it continues to innovate and expand its services to meet the evolving demands of consumers and dealers alike. The achievement of this 52-week high represents a significant milestone for CarGurus, signaling strong investor confidence and market momentum. For deeper insights and access to 15+ additional ProTips about CARG, including detailed valuation metrics and growth projections, explore InvestingPro's comprehensive research report.
In other recent news, CarGurus reported a 5% rise in consolidated revenue to $231 million in the recent quarter, with marketplace revenue growing by 15% to reach $204 million. The company's non-GAAP consolidated adjusted EBITDA also saw a substantial 33% increase. Research firms Needham, B.Riley, and RBC Capital Markets have all expressed confidence in CarGurus' performance and potential, with Needham raising its price target for the company to $45 and B.Riley and RBC Capital Markets adjusting their targets to $40 and $42 respectively.
These adjustments are based on the company's strong financial health, superior return on investments, and significant growth in dealer customers, which have solidified CarGurus' position in the used auto marketplace. Particularly noteworthy is the company's successful launch of new products and its focus on enhancing product offerings, as well as improving lead quality.
CarGurus' international business, especially in Canada, contributed to the overall growth with a 23% revenue increase. The company also announced a $200 million share repurchase program, set to commence in January 2025. Despite anticipating challenging results in 2025, CarGurus remains optimistic about its growth drivers and product offerings, expecting a fourth-quarter revenue between $219 million and $239 million, with marketplace revenue growth projected to be between 14% and 17% year-over-year.
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