CARG - CarGurus: Finally Getting Back On Its Feet Buy Before Q4 Earnings (Rating Upgrade)

2024-01-29 19:35:57 ET

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.

These days, it seems that the stock market has very little patience for turnaround stories. Investors latch onto the latest growth stories and pay very little attention to companies that are struggling with business transitions....

For further details see: