2024-06-25 14:54:02 ET
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.
Sometimes, turnaround stories require a bit of patience: but they make for great holds while the rest of the stock market is exceedingly expensive. And with record-breaking S&P 500 multiples, I'm positioning more and more of my portfolio into these value-oriented rebound plays....
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CarGurus: The Rebound Rally Has Steam