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

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].