5 Best Used Car Stocks to Buy

3. CarGurus, Inc. (NASDAQ: CARG)

Number of Hedge Fund Holders: 29  

CarGurus, Inc. (NASDAQ: CARG) is a Cambridge-based online marketplace for new and used cars. It is ranked third on our list of 10 best used car stocks to buy. The company’s shares have returned 12% to investors over the past year. On May 6, the firm posted earnings for the first quarter, reporting earnings per share of $0.33, beating market predictions by $0.10. The revenue over the period was $171 million, up more than 8% compared to the revenue over the same period last year and beating estimates by over $12 million. 

On May 26, investment advisory RBC initiated coverage of CarGurus, Inc. (NASDAQ: CARG) stock with a Sector Perform rating and a price target of $30, highlighting that the firm was a solid asset for investors with many intriguing projects under development.

Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Atreides Management is a leading shareholder in CarGurus, Inc. (NASDAQ: CARG) with 2.6 million shares worth more than $63 million.