Core Points - CarGurus, Inc. will release its financial results for Q4 and the fiscal year ending December 31, 2024, after market close on February 20, 2025 [1] - A conference call and live webcast will be held on February 20, 2025, at 5:00 p.m. Eastern Time to discuss the financial results [2] - An audio replay of the conference call will be available from 8:00 p.m. Eastern Time on February 20, 2025, until March 6, 2025 [3] Company Overview - CarGurus is a leading online automotive platform for buying and selling vehicles, utilizing proprietary technology and data analytics to enhance the automotive shopping experience [4] - The company operates online marketplaces in Canada and the U.K., and also manages independent brands like Autolist and PistonHeads in the U.S. and U.K. respectively [5]

Core Insights - CarGurus has launched a national brand campaign titled "Big Deal" to emphasize the significance of car shopping and the role of its digital tools in helping consumers make informed decisions [1][2][3] - The campaign aims to resonate with the emotional aspects of buying or selling a car, highlighting the importance of making the right choice during this significant life event [3] Company Overview - CarGurus, Inc. is the leading online platform for buying and selling vehicles, recognized as the most visited car-shopping site in the U.S. [2][7] - The platform provides comprehensive vehicle history, unbiased deal ratings, and additional tools like price drop alerts, enhancing consumer confidence in their purchasing decisions [2][5] - CarGurus operates in multiple markets, including Canada and the UK, and also manages independent online marketplaces such as Autolist and PistonHeads [7][8] Campaign Details - The "Big Deal" campaign will be promoted across various TV networks and connected TV providers, supplemented by digital and social media initiatives, including influencer programs [3] - The campaign reflects the emotional weight of car transactions while showcasing CarGurus' tools that facilitate the buying and selling process [3]

Core Insights - CarGurus has launched a national brand campaign titled "Big Deal" to emphasize the significance of car shopping and the role of its digital tools in helping consumers make informed decisions [1][2][3] - The campaign aims to resonate with the emotional aspects of buying or selling a car, acknowledging it as a major life decision [3] Company Overview - CarGurus is the most visited site for shopping, buying, and selling new and used cars in the U.S., with a focus on providing comprehensive vehicle history and unbiased deal ratings [2][7] - The platform offers various tools such as price drop alerts and financing options to enhance consumer confidence during the purchasing process [2][5] - CarGurus operates in multiple countries, including Canada and the UK, and manages independent online marketplaces like Autolist and PistonHeads [7] Marketing Strategy - The "Big Deal" campaign will be promoted across TV networks and connected TV providers, supplemented by digital and social media initiatives, including influencer programs [3] - The campaign reflects the company's commitment to supporting consumers throughout their car-buying journey, reinforcing trust and transparency in the automotive shopping experience [2][7]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as recommendations or advice for any financial actions [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to apply their own discretion [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - Users are encouraged to perform their own research before making investment decisions, particularly regarding instruments they do not fully understand [1].

Core Insights - CarGurus, Inc. is scheduled to participate in the 27th Annual Needham Growth Conference on January 15, 2025, at 11:45 AM ET, with CFO Elisa Palazzo speaking [1] - A webcast of the event will be available on the company's Investor Relations page, with an archive accessible for 30 days post-event [2] Company Overview - CarGurus is a leading online automotive platform for buying and selling vehicles, recognized as the most visited automotive shopping site in the U.S. [3] - The company operates in multiple countries, including Canada and the U.K., and manages independent online marketplaces such as Autolist and PistonHeads [3] - CarGurus utilizes proprietary technology, search algorithms, and data analytics to enhance trust, transparency, and competitive pricing in the automotive shopping experience [3]

Core Insights - The CarGurus 2024 U.S. Consumer Insights Report indicates rising consumer satisfaction and buying power, with more shoppers utilizing online tools for their purchasing decisions [1][6] Group 1: Consumer Trends - Buyer satisfaction has increased, with 79% of car buyers satisfied with their experience, and 35% extremely satisfied, up from 28% in 2023 [3] - Seller satisfaction also rose, with 78% of sellers feeling they received a "good" or "great" deal, an increase from 70% in 2023 [3] - The percentage of buyers making need-based purchases declined from 67% in 2023 to 62% in 2024, while those looking to add a vehicle increased from 27% to 34% [3] Group 2: Online Engagement - A significant shift towards online engagement is noted, with 80% of buyers preferring to handle more steps online, up from 69% in 2023 [4] - 90% of buyers conducted vehicle research online, compared to 81% in 2023, and 87% of sellers were open to selling completely online, an increase from 82% [4] - Despite the preference for online processes, 88% of buyers still preferred to see the car in person before purchase, with 69% wanting to test drive [4] Group 3: Financing Insights - High interest rates have not deterred financing, with only 11% of buyers indicating that rates discouraged them, down from 16% in 2023 [5] - Approximately 53% of buyers financed their purchases, with 37% handling the process online and 34% in-person [5] - A notable increase in dealership financing was observed, with 64% of buyers securing financing at the dealership, compared to 49% in 2023 [5] Group 4: Market Conditions - New car inventory rose by 31% year-over-year, contributing to moderated prices, while average used car prices decreased by 3% [2] - The importance of available inventory in purchase decisions decreased, with only 26% citing it as a top factor, down from 18% in 2023 [2] - Price considerations remained paramount, with 56% of buyers prioritizing price and 30% focusing on financing availability [2]

Core Insights - The defining theme for 2024 is affordability, with a significant increase in demand for used vehicles, particularly Certified Pre-Owned Vehicles, driven by high interest rates and persistent high prices [2] - The new vehicle inventory surged by nearly 31% since the end of 2023, with average prices around $49,000, while the used vehicle market saw a 3% decline in average price to $27,900 [2] - The report highlights the rise of hybrid vehicles, with average prices dropping nearly 10% to $46,600, making them more attractive compared to electric vehicles [3] Market Trends - The used vehicle market is experiencing a shortage of late model year listings due to the semiconductor shortage, with 2021 model inventory down by nearly 22% and 2020 models down by 17% [4] - Demand for larger body styles, especially pickups, remains strong, with models like Chevrolet Silverado 1500 and Ford F-150 being the most viewed in 2024 [5] Future Outlook - Potential impacts of tariffs are a concern, particularly for automakers like Hyundai, Mercedes-Benz, and Kia, which have a high percentage of models made outside North America [6] - The possible end of the New Clean Vehicle Tax Credit could limit EV sales demand in 2025, especially in the used market where one-third of listings are under the $25,000 qualification limit [7] - There is a rising demand for higher-priced models, which may be influenced by potential lower interest rates, expanding buying power for consumers [9]

Core Viewpoint - CarGurus (CARG) shows a promising earnings outlook, with analysts raising their earnings estimates, indicating potential for continued stock momentum [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions reflects growing analyst optimism about CarGurus' earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, CarGurus is projected to earn $0.49 per share, a 40% increase from the previous year, with a 9.41% rise in the Zacks Consensus Estimate over the last 30 days [4]. - For the full year, the expected earnings are $1.66 per share, representing a year-over-year increase of 34.96%, with a 5.6% increase in the consensus estimate due to three upward revisions [5]. Zacks Rank - CarGurus has achieved a Zacks Rank 2 (Buy), indicating strong potential based on favorable estimate revisions, which historically lead to significant outperformance compared to the S&P 500 [6]. - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown an average annual return of +25% since 2008, highlighting the effectiveness of the Zacks Rank system [3][6]. Stock Performance - CarGurus' stock has increased by 11.1% over the past four weeks due to strong estimate revisions, suggesting further upside potential [7].

Core Viewpoint - CarGurus (NASDAQ: CARG) has a positive growth outlook due to its ability to monetize dealers through new product offerings [1] Group 1: Company Analysis - CarGurus is expected to benefit from its recent product rollouts aimed at enhancing dealer monetization [1] - The company is positioned to capitalize on long-term growth potential by focusing on quality offerings at competitive pricing [1]

Company Overview - CarGurus (CARG) currently holds a Momentum Style Score of B, indicating a positive momentum outlook for the company [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] Price Performance - Over the past week, CarGurus shares have increased by 2.38%, while the Zacks Automotive - Replacement Parts industry has declined by 2.28% [7] - In a longer time frame, CarGurus has seen an 11.81% price increase over the past month, outperforming the industry's 9.92% [7] - Over the last quarter, shares have risen by 23.56%, and over the past year, they have gained 68.89%, compared to the S&P 500's increases of 6.44% and 32.19%, respectively [8] Trading Volume - The average 20-day trading volume for CarGurus is 658,360 shares, which serves as a bullish indicator when combined with rising stock prices [9] Earnings Estimates - In the past two months, 3 earnings estimates for CarGurus have been revised upwards, while 1 has been revised downwards, leading to an increase in the consensus estimate from $1.62 to $1.66 [11] - For the next fiscal year, 4 estimates have moved higher, with 1 downward revision during the same period [11] Conclusion - Considering the positive price trends, trading volume, and upward revisions in earnings estimates, CarGurus is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]