CarGurus, Inc. [NASDAQ: CARG] shares went lower by -23.55% from its previous closing of $34.10, now trading at the price of $26.07, also adding -8.03 points. Is CARG stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 11.48 million contracts. Compared to the average trading volume of CARG shares, the company saw a far better performance. Moreover, the stock has a 75.19M float and a -21.21% run over in the last seven days. CARG share price has been hovering between $45.25 and $28.65 lately, and is definitely worthy of attention.
CarGurus, Inc. [NASDAQ:CARG]: Analyst Rating and Earnings
Its stock price has been found in the range of 28.65 to 45.25. This is compared to its latest closing price of $34.10.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Thu 14 May (In 90 Days).
Fundamental Analysis of CarGurus, Inc. [CARG]
Now let’s turn to look at profitability: with a current Operating Margin for CarGurus, Inc. [CARG] sitting at +5.11 and its Gross Margin at +93.92, this company’s Net Margin is now 8.50%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 14.44, and its Return on Invested Capital has reached 32.40%. Its Return on Equity is 40.59, and its Return on Assets is 28.78. These metrics all suggest that CarGurus, Inc. is doing well at using the money it earns to generate returns.
What about valuation? This company’s Enterprise Value to EBITDA is 114.87. The Enterprise Value to Sales for this firm is now 8.07. CarGurus, Inc. [CARG] has a Price to Book Ratio of 19.19, a Price to Cash Flow Ratio of 73.93 and P/E Ratio of 70.07. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, CarGurus, Inc. [CARG] earns $620,336 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 34.67 and its Total Asset Turnover is 2.01. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.99 and its Current Ratio is 2.99. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
CarGurus, Inc. [CARG] has 115.37M shares outstanding, amounting to a total market cap of $3.93B. Its stock price has been found in the range of 28.65 to 45.25. At its current price, it has moved down by -42.39% from its 52-week high, and it has moved down -9.01% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 18.88. This stock, according to these metrics, is currently Oversold.
Conclusion: Is CarGurus, Inc. [CARG] a Reliable Buy?
CarGurus, Inc. [CARG] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.