Earnings Estimates Rising for CarGurus (CARG): Will It Gain?

CarGurus (CARG) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The upward trend in estimate revisions for this online auto shopping platform reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.Consensus earnings estimates for the next quarter and full year have moved considerably higher for CarGurus, as there has been strong agreement among the covering analysts in raising estimates.Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $0.49 per share, which is a change of +40% from the year-ago reported number.The Zacks Consensus Estimate for CarGurus has increased 9.41% over the last 30 days, as four estimates have gone higher while one has gone lower.Current-Year Estimate RevisionsFor the full year, the company is expected to earn $1.66 per share, representing a year-over-year change of +34.96%.In terms of estimate revisions, the trend for the current year also appears quite encouraging for CarGurus. Over the past month, three estimates have moved higher compared to one negative revision, helping the consensus estimate increase 5.6%.Favorable Zacks RankThe promising estimate revisions have helped CarGurus earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.Bottom LineWhile strong estimate revisions for CarGurus have attracted decent investments and pushed the stock 11.1% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CarGurus, Inc. (CARG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks