What Makes CarGurus (CARG) a Strong Momentum Stock: Buy Now?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: CarGurus (CARG) - CarGurus currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2]. - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook compared to the market [3]. Price Performance - Over the past week, CarGurus shares increased by 4.97%, outperforming the Zacks Automotive - Replacement Parts industry, which rose by 3.04% [5]. - In a longer timeframe, CARG's shares have appreciated by 12.74% over the past month, compared to the industry's 10.9% [5]. - Over the last quarter, CARG shares have surged by 21.59%, and over the past year, they have gained 55.48%, while the S&P 500 only increased by 5.9% and 29.32%, respectively [6]. Trading Volume - The average 20-day trading volume for CarGurus is 924,793 shares, which serves as a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - In the last two months, 6 earnings estimates for CarGurus have been revised upwards, while none have been lowered, raising the consensus estimate from $1.45 to$1.62 [9]. - For the next fiscal year, 4 estimates have increased, while 2 have decreased during the same period [9]. Conclusion - Given the strong momentum indicators and positive earnings outlook, CarGurus is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [9].