CarGurus (CARG) is a Great Momentum Stock: Should You Buy?

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] Company Summary: CarGurus (CARG) - CarGurus currently holds a Momentum Style Score of B, indicating a positive outlook based on price changes and earnings estimate revisions [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] - Over the past week, CarGurus shares increased by 4.22%, while the Zacks Automotive - Replacement Parts industry saw a decline of 0.11% [5] - In a longer timeframe, CarGurus shares rose by 17.81% over the past quarter and 74.09% over the last year, significantly outperforming the S&P 500's increases of 5.62% and 34.34%, respectively [6] - The average 20-day trading volume for CarGurus is 755,533 shares, indicating a bullish trend when combined with rising stock prices [7] Earnings Outlook - In the past two months, 6 earnings estimates for CarGurus have been revised upwards, increasing the consensus estimate from $1.45 to$1.62 [9] - For the next fiscal year, 4 estimates have moved up while 2 have been revised down, reflecting a generally positive earnings outlook [9]