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Bull of the Day: CarGurus (CARG)
Providing an online marketplace that connects buyers and sellers of new and used cars, CarGurus (CARG - Free Report) increased profitability may be catching investors attention.
Furthermore, CarGurus belongs to the Zacks Automotive-Replacement Parts Industry which is currently in the top 9% of almost 250 Zacks industries.
Benefiting from its strong business industry, earnings estimate revisions are nicely up for CarGurus landing its stock a Zacks Rank #1 (Strong Buy) and the Bull of the Day.
Strong Financial Performance
CarGurus stock has soared over +50% in 2024 with the company now reaching or exceeding the Zacks EPS Consensus for nine consecutive quarters. Notably, CarGurus has attributed its customer-centric focus as the major catalyst to its improved financial performance.
Image Source: Zacks Investment Research
Operational Efficiency
Seeing a sharp increase in its core marketplace revenue, CarGurus has leveraged its cost base to drive operating efficiencies. Annual earnings are now expected to increase 34% in fiscal 2024 to $1.66 per share versus EPS of $1.23 last year. Plus, FY25 EPS is projected to expand another 15%. More intriguing is that FY24 and FY25 EPS estimates are nicely up over the last 60 days.
Image Source: Zacks Investment Research
Share Repurchase Program
Further boosting investor sentiment, CarGurus’ board of directors have authorized a $200 million share repurchase plan for FY25. This should further support the stock price of CARG with the Average Zacks Price Target of $39.29 a share still suggesting 7% upside from current levels.
Image Source: Zacks Investment Research
Bottom Line
It’s hard to overlook CarGurus stock going into 2025 with CARG having an “A” Zacks Style Scores grade for Growth in addition to its strong buy rating.