CARG - CarGurus: Avoid This Overvalued Stock
Investment Thesis
CarGurus (CARG) is rapidly decelerating its growth rate and has a very poor profit profitability profile. Compounding its troubles, it's one of the most expensive car-listing companies around.
With no realistic upside potential, shareholders would do well to reconsider this investment. Here's why:
Guidance: Shocking? Or Obvious?
Consider CarGurus' revenue growth rate trajectory:
Source: author's calculations
Immediately obvious is CarGurus' rapid revenue growth deceleration.
Despite the narrative of rapid international expansion, not to mention its heavily acquisitive modus operandi, having acquired both PistonHeads in the Summer of 2019 and more