Stock analysis · Bull Rankings model

CARG analysis

CarGurus, Inc.Auto & Truck Dealerships. Scored on the same transparent 7-signal model behind the daily rankings.

CARG
CarGurus, Inc. · Auto & Truck Dealerships
FCF$269mC
Rev+14.8%B+
D/E0.79B
P/E14.9xB+
PEG0.86B+
94Score
$28.24
1Y Target$37.36Near-term target
5Y Target$37.79Compound horizon
10Y Target$48.24Long-dated conviction
FCF$269mTTM · 03/26
C
FCF $269m — modest; watch for margin expansion · TTM computed from 4 most-recent quarters (TTM · 03/26).
Rev+14.8%TTM YoY
B+
Revenue +14.8% — above sector median, healthy trajectory
D/E0.79
B
D/E 0.79 — at market average, manageable
P/E14.9x
B+
P/E 14.9 — at or below S&P median, reasonable
PEG0.86
B+
PEG 0.86 — near fair value, classic Lynch benchmark (1.0)
Why now
Auto & Truck Dealerships · market cap $2.5b. Down 28% from 52-week high of $39.42 — deep drawdown territory. Revenue growing +15%, comfortably above the S&P median. PEG 0.86 — paying under fair value for the growth rate. 11 sell-side analysts rate this a Buy with a mean 1-yr target of $37.36 (implying +32% upside).
Moat
Net margin 16% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 58% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 144% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon
1-3 yr $37.36 (11-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $37.79 at ~6% CAGR — dividend + buyback compounding. 10 yr $48.24 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Shares to buy
70
Position size
$1,977
4.0% of portfolio
Stop price
$21.18
25% below $28.24
$ at risk
$500.00
1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

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