Palantir a high-risk investment with ’a one-of-a-kind growth and margin model’
In a remarkable display of market resilience, CarGurus Inc. (NASDAQ:CARG) stock has surged to a 52-week high, reaching a price level of $38.96. This impressive milestone underscores the company's robust performance over the past year, which has seen an extraordinary 1-year change of 82.38%. With a market capitalization of $4.04 billion and an "GOOD" financial health rating according to InvestingPro, CarGurus has demonstrated strong momentum, though technical indicators suggest the stock may be entering overbought territory. Investors have shown increasing confidence in the online automotive marketplace, propelling the stock to new heights amidst a dynamic and competitive industry landscape. The 52-week high represents a significant turnaround and a period of strong gains for CarGurus, reflecting the company's strategic initiatives and growth potential in the eyes of shareholders. InvestingPro analysis reveals 17 additional investment tips for CARG, including crucial insights about the company's earnings outlook and balance sheet strength. Access the comprehensive Pro Research Report for deeper analysis of CarGurus' market position and growth trajectory.
In other recent news, CarGurus Inc. has been making headlines due to its strong third-quarter performance. The company reported a 5% year-over-year increase in consolidated revenue, reaching $231 million, with marketplace revenue growing by 15% to $204 million. Additionally, non-GAAP consolidated adjusted EBITDA saw a significant rise of 33% year-over-year.
Analysts from B.Riley and RBC Capital Markets have responded positively to these developments. B.Riley analyst has adjusted the price target for CarGurus to $40.00, up from the previous $30.00, while maintaining a Buy rating on the stock. RBC Capital Markets also raised its price target for the company to $42, citing strong Q3 results and margin gains.
CarGurus' international business, particularly 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. For the fourth quarter, CarGurus anticipates a revenue between $219 million and $239 million, with marketplace revenue growth expected to be between 14% and 17% year-over-year.
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