CARG - CarGurus: Repositioned For Growth

2024-04-14 02:15:17 ET

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.

In my view, there's no better time to bet on solid turnaround names than during a period of market volatility and expensive valuation multiples. Contrarian plays like these, in my view, are more insulated from the whiplashes in the stock market driven by macro factors like interest rates, and investors can buy with confidence knowing they are investing in businesses with firm footing and a more than reasonable valuation....

For further details see: