CarGurus Future Growth
Future criteria checks 3/6
CarGurus is forecast to grow earnings and revenue by 19.8% and 7.7% per annum respectively. EPS is expected to grow by 19.4% per annum. Return on equity is forecast to be 57.1% in 3 years.
Key information
19.8%
Earnings growth rate
19.40%
EPS growth rate
| Interactive Media and Services earnings growth | 12.3% |
| Revenue growth rate | 7.7% |
| Future return on equity | 57.15% |
| Analyst coverage | Good |
| Last updated | 08 May 2026 |
Recent future growth updates
Recent updates
Seeking Alpha • May 09
CarGurus: A Value Play With Strong Fundamentals
Summary CarGurus remains a deeply undervalued, high-margin, and stable growth play amid a crowded AI and semiconductor market. CARG’s 15% revenue growth, expanding dealer base, and strong international momentum highlight resilient fundamentals despite a mixed Q1 and macro headwinds. Trading at 9.4x EV/FY26 adjusted EBITDA, CARG offers compelling value, reinforced by robust buybacks and a debt-free balance sheet. Risks from tightening credit and Carvana’s share gains appear fully priced in; I reiterate my buy rating and advocate buying the recent dip. Read the full article on Seeking Alpha
Narrative Update • Apr 27
CARG: Dealer Data And Buybacks Will Offset QARSD And 2026 Margin Pressures
Narrative Update on CarGurus Price Target The updated analyst price target for CarGurus edges higher to about $36 from roughly $35.80, as analysts weigh slightly adjusted assumptions for discount rate, revenue growth, profit margins and future P/E multiples against new guidance that includes 2026 investment plans, QARSD expectations and the potential impact of new product adoption. Analyst Commentary Recent research updates present a mixed picture for CarGurus, with most firms trimming price targets but highlighting different aspects of execution, growth prospects and near term investment plans.Narrative Update • Apr 09
CARG: Dealer Data And Buybacks Will Support QARSD And 2026 Margin Investment
Narrative Update on CarGurus The updated analyst price target for CarGurus reflects a pullback of several dollars per share, as analysts factor in 2026 guidance that pairs expectations for roughly 10% to 13% revenue growth with lower margin assumptions tied to increased investment and questions around sustaining higher U.S. QARSD pricing. Analyst Commentary Recent research updates on CarGurus converge on a similar message, with analysts trimming price targets while reacting to the initial 2026 outlook for revenue growth of about 10% to 13% and lower margin expectations tied to higher investment.Narrative Update • Mar 25
CARG: Dealer Data And Buybacks Will Counter AI And 2026 Margin Investment
Analysts have trimmed their average 12 month price target on CarGurus by several dollars to reflect updated 2026 revenue growth and margin guidance, while still pointing to potential benefits from subscription upgrades, new product attach rates, the company's dealer relationships, and its valuation data assets. Analyst Commentary Analysts are reassessing CarGurus around its 2026 outlook, trimming price targets while weighing the trade off between near term margin pressure and potential benefits from product expansion and dealer growth.Narrative Update • Mar 10
CARG: Dealer Data And Buybacks Will Offset AI And Margin Investment Concerns
CarGurus' blended analyst price target has edged down by about $0.83 as analysts factor in 2026 guidance, which combines expected revenue growth with planned margin investment and ongoing debate around the impact of AI disruption narratives on the business. Analyst Commentary Street research around CarGurus' 2026 outlook clusters around how the company balances revenue growth targets with margin investment and the AI disruption narrative that has pressured sentiment.Narrative Update • Feb 24
CARG: Dealer Data And Listings Model Will Withstand AI Disruption Narrative
Our updated CarGurus narrative reflects a lower blended analyst price target, down to a mid $30s level from around $40, as analysts factor in 2026 guidance that pairs higher expected U.S. QARSD-driven revenue growth with lighter margin expectations due to planned investments and an AI-related overhang on sentiment. Analyst Commentary Recent Street research on CarGurus clusters around a similar theme: solid underlying demand signals for its core dealer products, paired with a more cautious stance on profitability as management plans for heavier investments through 2026.Narrative Update • Feb 10
CARG: Data Tools And Listings Model Will Benefit From Gradual Amazon Autos Expansion
Narrative Update Analysts have trimmed their price target for CarGurus by about $0.58, reflecting slightly lower fair value and P/E assumptions. They also note that Amazon Autos currently operates a third party model more comparable to listings platforms like CarGurus than to vertically integrated used car retailers.Analysis Article • Feb 06
CarGurus, Inc. (NASDAQ:CARG) May Have Run Too Fast Too Soon With Recent 26% Price Plummet
CarGurus, Inc. ( NASDAQ:CARG ) shares have had a horrible month, losing 26% after a relatively good period beforehand...Narrative Update • Jan 26
CARG: Marketplace And Data Tools Will Benefit From Gradual Amazon Autos Expansion
Narrative Update Analysts have nudged their CarGurus fair value estimate slightly lower to about $40.88 from $40.96, reflecting modest adjustments to the discount rate, revenue growth, profit margin and future P/E assumptions. They also note that Amazon Autos currently operates in a third-party listings model similar to CarGurus, which they see as limiting any near-term read-across from recent headlines.Narrative Update • Jan 10
CARG: Marketplace And Data Tools Will Face Gradual Amazon Autos Competition
Analysts have inched their CarGurus fair value estimate up from about US$40.54 to about US$40.96 as they factor in a slightly higher future P/E assumption and view Amazon Autos as operating more like a listings platform, which they see as limiting direct pressure on CarGurus in the near term. Analyst Commentary Recent commentary around Amazon Autos and its impact on online used car platforms is giving investors more context for how CarGurus might be positioned over the next couple of years, especially as analysts compare Amazon’s model to existing listings sites.Narrative Update • Dec 24
CARG: Marketplace And Data Solutions Will Navigate Emerging Online Competition Ahead
Analysts nudged their price target on CarGurus slightly higher, to about $40.54 from roughly $40.29, citing modest improvements in growth and profitability assumptions and the view that emerging online auto marketplace competition is likely to have a delayed impact. Analyst Commentary Street research continues to frame the evolving competitive landscape as a medium term rather than immediate risk to CarGurus, with valuation and execution expectations adjusted accordingly.Narrative Update • Dec 10
CARG: Marketplace Resilience And Buybacks Will Support Balanced Medium Term Upside
Analysts have modestly raised their price target on CarGurus, citing slightly faster expected revenue growth, a small improvement in long term profit margins, and resilient marketplace dynamics as Amazon Autos evolves toward a listings style model. This brings the implied fair value closer to about $40 per share.Narrative Update • Nov 26
CARG: Share Repurchases And Competitive Gaps Will Drive Further Outperformance
Analysts have raised their price target for CarGurus slightly to $40.29 from $39.92. They cited improved revenue growth projections, which offset a modest decline in profit margin expectations.Narrative Update • Nov 12
CARG: Market Position Will Strengthen Amid Limited Threats From New Entrants
Analysts have slightly raised their price target for CarGurus from $39.75 to $39.92. They cite stronger expected profit margins and revenue growth, with confidence bolstered by recent research suggesting limited near-term competitive threats.Narrative Update • Oct 29
Dealer Network Expansion And Premium Tier Adoption Will Drive Future Performance
Analysts have modestly increased their fair value estimate for CarGurus to $39.75, citing stronger marketplace revenue growth and solid dealer expansion. This change comes despite mixed profit margins and the planned winding down of CarOffer.Analysis Article • May 10
Returns on Capital Paint A Bright Future For CarGurus (NASDAQ:CARG)
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...New Narrative • May 07
Digital Deal Integration Will Strengthen Global Dealer Engagement
Integration of online and offline engagement boosts dealer interaction and revenue, with AI-driven personalization enhancing customer acquisition and engagement.Analysis Article • Apr 03
CarGurus, Inc.'s (NASDAQ:CARG) Shareholders Might Be Looking For Exit
CarGurus, Inc.'s ( NASDAQ:CARG ) price-to-sales (or "P/S") ratio of 3.4x may look like a poor investment opportunity...Analysis Article • Feb 27
We Think You Can Look Beyond CarGurus' (NASDAQ:CARG) Lackluster Earnings
CarGurus, Inc.'s ( NASDAQ:CARG ) earnings announcement last week didn't impress shareholders. However, our analysis...Seeking Alpha • Feb 21
CarGurus: Rocky Recovery Ahead
Summary CarGurus, Inc. is recovering from a rough patch due to the post pandemic market swing, with improving profitability metrics and strong marketplace growth. The platform offers the best ROI for independent dealers, attracting more dealers and increasing inventory. Gross profit margins and EBITDA margins are rising, driven by a favorable revenue mix and marketplace business expansion. Despite economic risks, CarGurus' revenue growth and profitability improvements position it as a promising recovery story. Read the full article on Seeking AlphaSeeking Alpha • Nov 21
CarGurus: Solid Monetization Strategy, But Upside Is Limited
Summary CARG's growth outlook is positive, driven by successful monetization of new products and increased dealer engagement, leading to mid-single-digit growth over the next two years. Recent earnings results show strong performance with revenue and EBITDA growth, supported by robust dealer adoption of CARG's value-added offerings. Despite strong execution and profitability improvements, the stock's current valuation suggests it is trading at fair value, limiting further share price appreciation. Read the full article on Seeking AlphaSeeking Alpha • Sep 09
CarGurus: Take Profits Here As U.S. Web Traffic Declines (Rating Downgrade)
Summary Downgrading CarGurus to a neutral rating after the stock rallied post-Q2 earnings release. Though marketplace revenue showed re-accelerating growth rates and healthy guidance, the company's web traffic in the U.S. is declining. This may be a leading indicator of weaker used car sales in the wake of a potential recession, which will impact dealerships' willingness to advertise on CarGurus. Read the full article on Seeking AlphaAnalysis Article • Aug 02
CarGurus, Inc.'s (NASDAQ:CARG) Business Is Trailing The Industry But Its Shares Aren't
When you see that almost half of the companies in the Interactive Media and Services industry in the United States have...Seeking Alpha • Jun 25
CarGurus: The Rebound Rally Has Steam
Summary CarGurus is poised for a rebound as the company has turned around its marketplace business. It is now back to growing paid dealership counts, after several quarters of decline. User traffic is also rebounding, especially as CarGurus improves its available car inventory shown on the site. The stock trades at a very reasonable ~2.5x multiple of next year's revenue. Read the full article on Seeking AlphaAnalysis Article • Apr 26
Is CarGurus, Inc. (NASDAQ:CARG) Potentially Undervalued?
CarGurus, Inc. ( NASDAQ:CARG ), is not the largest company out there, but it saw significant share price movement...Seeking Alpha • Apr 14
CarGurus: Repositioned For Growth
Summary CarGurus is a solid turnaround name that is insulated from market volatility and has a reasonable valuation. The company is the #1 site for used car research in the U.S. and has seen re-accelerating growth and strong traffic results. Improved profitability in its wholesale subsidiary, CarOffer, has substantially lifted the stock's adjusted EBITDA profile. Read the full article on Seeking AlphaAnalysis Article • Apr 03
Subdued Growth No Barrier To CarGurus, Inc.'s (NASDAQ:CARG) Price
When you see that almost half of the companies in the Interactive Media and Services industry in the United States have...Seeking Alpha • Jan 30
CarGurus: Finally Getting Back On Its Feet, Buy Before Q4 Earnings (Rating Upgrade)
Summary CarGurus is experiencing a return to accelerating growth rates in its marketplace business, which is a high-margin source of revenue. The company has stabilized its wholesale arm and profits are around breakeven despite a smaller scale. CarGurus' improving metrics include an increase in paid dealer counts, higher revenue per paying dealer, and an 8% growth in marketplace revenue. I expect further upside as CarGurus continues to enrich its adjusted EBITDA profile. Read the full article on Seeking AlphaAnalysis Article • Jan 03
Returns At CarGurus (NASDAQ:CARG) Appear To Be Weighed Down
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a...Analysis Article • Dec 12
CarGurus, Inc. (NASDAQ:CARG) Shares Could Be 48% Below Their Intrinsic Value Estimate
Key Insights The projected fair value for CarGurus is US$42.06 based on 2 Stage Free Cash Flow to Equity CarGurus...Analysis Article • Nov 14
What Does CarGurus, Inc.'s (NASDAQ:CARG) Share Price Indicate?
CarGurus, Inc. ( NASDAQ:CARG ), might not be a large cap stock, but it saw a double-digit share price rise of over 10...Earnings and Revenue Growth Forecasts
| Date | Revenue | Earnings | Free Cash Flow | Cash from Op | Avg. No. Analysts |
|---|---|---|---|---|---|
| 12/31/2028 | 1,184 | 322 | 290 | 583 | 6 |
| 12/31/2027 | 1,105 | 223 | 278 | 406 | 13 |
| 12/31/2026 | 1,014 | 188 | 267 | 283 | 13 |
| 3/31/2026 | 938 | 187 | 269 | 297 | N/A |
| 12/31/2025 | 907 | 197 | 266 | 295 | N/A |
| 9/30/2025 | 926 | 152 | 252 | 288 | N/A |
| 6/30/2025 | 919 | 130 | 229 | 273 | N/A |
| 3/31/2025 | 904 | 39 | 204 | 271 | N/A |
| 12/31/2024 | 798 | 129 | 162 | 255 | N/A |
| 9/30/2024 | 889 | -49 | 82 | 182 | N/A |
| 6/30/2024 | 877 | -49 | 58 | 152 | N/A |
| 3/31/2024 | 898 | 36 | 41 | 110 | N/A |
| 12/31/2023 | 698 | 101 | 83 | 125 | N/A |
| 9/30/2023 | 978 | 214 | 192 | 217 | N/A |
| 6/30/2023 | 1,185 | 299 | 243 | 264 | N/A |
| 3/31/2023 | 1,456 | 272 | 210 | 229 | N/A |
| 12/31/2022 | 1,655 | 194 | 239 | 256 | N/A |
| 9/30/2022 | 1,708 | -45 | 107 | 124 | N/A |
| 6/30/2022 | 1,504 | -123 | 89 | 105 | N/A |
| 3/31/2022 | 1,211 | -85 | 132 | 147 | N/A |
| 12/31/2021 | 951 | 0 | 84 | 98 | N/A |
| 9/30/2021 | 764 | 105 | 172 | 183 | N/A |
| 6/30/2021 | 688 | 108 | 193 | 203 | N/A |
| 3/31/2021 | 565 | 87 | 183 | 190 | N/A |
| 12/31/2020 | 551 | 78 | 149 | 157 | N/A |
| 9/30/2020 | 558 | 66 | 122 | 129 | N/A |
| 6/30/2020 | 561 | 43 | 71 | 79 | N/A |
| 3/31/2020 | 611 | 42 | 61 | 71 | N/A |
| 12/31/2019 | 589 | 42 | N/A | 70 | N/A |
| 9/30/2019 | 557 | 41 | N/A | 67 | N/A |
| 6/30/2019 | 526 | 45 | N/A | 54 | N/A |
| 3/31/2019 | 491 | 72 | N/A | 55 | N/A |
| 12/31/2018 | 454 | 65 | N/A | 52 | N/A |
| 9/30/2018 | 419 | 55 | N/A | 42 | N/A |
| 6/30/2018 | 382 | 42 | N/A | 39 | N/A |
| 3/31/2018 | 348 | 11 | N/A | 27 | N/A |
| 12/31/2017 | 317 | 7 | N/A | 26 | N/A |
| 9/30/2017 | 287 | -22 | N/A | 18 | N/A |
| 6/30/2017 | 257 | -22 | N/A | 24 | N/A |
| 3/31/2017 | 227 | -24 | N/A | 24 | N/A |
| 12/31/2016 | 198 | -26 | N/A | 20 | N/A |
| 12/31/2015 | 99 | -18 | N/A | 13 | N/A |
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CARG's forecast earnings growth (19.8% per year) is above the savings rate (3.5%).
Earnings vs Market: CARG's earnings (19.8% per year) are forecast to grow faster than the US market (16.7% per year).
High Growth Earnings: CARG's earnings are forecast to grow, but not significantly.
Revenue vs Market: CARG's revenue (7.7% per year) is forecast to grow slower than the US market (11.6% per year).
High Growth Revenue: CARG's revenue (7.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CARG's Return on Equity is forecast to be very high in 3 years time (57.1%).
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/11 08:36 |
| End of Day Share Price | 2026/05/08 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
CarGurus, Inc. is covered by 23 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Daniel Kurnos | Benchmark Company |
| Naved Khan | B. Riley Securities, Inc. |
| Marvin Fong | BTIG |