What Happened?
Shares of online new and used car marketplace Cars.com (NYSE: CARS) jumped 3.9% in the afternoon session as the stock garnered positive attention from analysts covering the company. A report covering five analysts showed a "Strong Buy" consensus rating. On average, these analysts set a price target of $17.70, which forecasted a potential 38.50% increase in the stock's value over the next year. The report noted that analysts believed the stock was likely to perform very well in the near future and significantly outperform the market.
After the initial pop the shares cooled down to $13.21, up 3.9% from previous close.
Is now the time to buy Cars.com? Access our full analysis report here.
What Is The Market Telling Us
Cars.com’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock gained 4% on the news that the stock benefited from a positive outlook from Wall Street analysts. A consensus of analysts who covered the stock rated it a 'Strong Buy'. Their price targets suggested confidence in the company's future performance. For instance, one group of five analysts had an average price target that forecasted a potential 52.59% increase in the stock's value. A separate consensus from seven analysts pointed to an average price target of $19.36. This general view from market experts indicated a belief that the stock would likely outperform the broader market.
Cars.com is down 21.6% since the beginning of the year, and at $13.21 per share, it is trading 30% below its 52-week high of $18.86 from January 2025. Investors who bought $1,000 worth of Cars.com’s shares 5 years ago would now be looking at an investment worth $1,013.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.
