Review of the Cargurus company
In the portfolio - 2 stocks (bought at $25.94), ~0.7% of the portfolio.
CarGurus, Inc. operates an automotive marketplace connecting buyers and sellers of new and used cars in the US, Canada, UK, Germany, Italy and Spain. Listing on the NasdaqGS exchange since 10.2017.
Tomorrow, May 7, the company has a report. At the moment, the indicators are as follows:
Share $23.85, PE = 65, PEG ~2.4, capitalization = $2.7 billion.
CarGurus has no debt and $170 million in cash in its accounts - this is good. It has grown quite quickly in terms of revenue in the past - this is also very good. The founder, Langley Steinert, owns ~20% of the company - even better 😂
Current EPS = $0.378, EPS forecasts (range):
2020 = -0.05 - 0.14
2021 = 0.25 - 0.58
2022 = 0.55 - 0.87
2023 = 0.87 - 1.23
In general, not taking into account 2020, which is likely to be a bad year for many companies, the forecast is quite optimistic, my target until May 2023: $50 per share = +100% profit or ~28% per annum in dollars. IMPORTANT: the company is small and promising, but I do not recommend investing more than 5% in the portfolio.
Graphics:
1⃣ Price dynamics stocks
2⃣ Dynamics of revenue and profit (2020 and beyond - forecast values)
3⃣ Earnings per share dynamics (2020 and beyond - forecast values).
Ideas
May 6, 2020