CarGurus saw its IBD SmartSelect Composite Rating jump to 96 Monday, up from 92 the day before. The car-buying website posted bullish fourth-quarter results, beating estimates. The stock soared 44% on the news on Friday and added more gains on Monday to new 52-week high.
The revised score means the stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. The best stocks tend to have a 95 or better grade as they launch a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
Looking For The Best Stocks To Buy And Watch? Try These Exclusive Lists
Is CarGurus Stock A Buy?
With its monster move on Friday, it's tempting to jump in for a ride higher, but CarGurus stock is considered extended and now out of buy range after. Wait for the stock to pull back or set up pattern or buying opportunity. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips. Also, check out "Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks."
CarGurus has a 94 EPS Rating, which means its recent quarterly and annual earnings growth is outpacing 94% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
In Q4, the company posted 34% earnings-per-share growth. Revenue growth increased 124%, up from 51% in the prior report. That marks one quarter of accelerating revenue increases.
CarGurus stock holds the No. 1 rank among its peers in the Internet-Content industry group. Alphabet and Alphabet are also among the group's highest-rated stocks.
