- High Debt Burden: The company’s 93% net debt-to-equity ratio creates financial leverage that amplifies both gains and losses.
- Industry Headwinds: Car prices remain stubbornly high while potential tariffs could further pressure automotive affordability.
- Competitive Threats: Amazon’s rumored entry into automotive sales represents a significant disruptive risk to traditional marketplaces.
- Economic Sensitivity: Automotive sales correlate strongly with consumer confidence and economic conditions—any recession would hit transaction volumes hard.
How to Buy Cars.com Inc. (CARS) Shares - Investment in Cars.com Inc. (CARS) Stock
Thinking about investing in the digital future of car buying? Cars.com Inc. (CARS) represents the intersection of automotive retail and technology—a fascinating space for new investors. This platform connects millions of car buyers with dealers daily, creating a marketplace that's evolving faster than ever. Let's explore why this stock deserves your attention and how you can become part of its journey.
📈 Current Market Position and Investment Opportunity
As of August 28, 2025, Cars.com Inc. (CARS) is trading at $13.08 per share—a price point that many analysts believe represents significant undervaluation given the company’s market position and growth trajectory.
Mark your calendar: November 6, 2025 is the next critical date for CARS investors. This is when the company releases its Q3 2025 earnings report. Historical patterns show these announcements typically move the stock by 5-15% within days.
Earnings Impact Analysis: How News Moves This Stock
Looking at recent earnings reactions provides valuable insight for timing your investment:
| Date | Event | Pre-News Price | Post-News Change | Duration |
|---|---|---|---|---|
| Aug 7, 2025 | Q2 Earnings | $14.20 | -15.38% | 1 day |
| May 8, 2025 | Q1 Earnings | $15.80 | +3.2% | 3 days |
| Feb 6, 2025 | Q4 2024 | $16.50 | -8.5% | 2 days |
| Nov 7, 2024 | Q3 2024 | $17.25 | +5.1% | 1 week |
| Aug 8, 2024 | Q2 2024 | $16.80 | -4.2% | 2 days |
| May 9, 2024 | Q1 2024 | $15.40 | +6.8% | 4 days |
Pattern Insight: Negative earnings reactions tend to be sharp but short-lived (1-2 days), while positive moves often sustain for several days. The August 2025 drop created what many analysts call a “buyable dip” opportunity.
🎢 6-Month Price Journey: Rollercoaster with Purpose
Cars.com shares have experienced significant volatility but show underlying strength:
| Month | Price Range | Monthly Change | Key Driver |
|---|---|---|---|
| January 2025 | $16.18 – $19.00 | +3.40% | Strong holiday sales |
| February 2025 | $11.78 – $18.03 | -26.34% | Market-wide tech selloff |
| March 2025 | $10.80 – $13.61 | -14.62% | Continued sector pressure |
| April 2025 | $9.87 – $12.24 | +3.28% | Initial recovery signs |
| May 2025 | $9.56 – $12.05 | -5.50% | Mixed industry data |
| August 2025 | $12.90 – $13.20 | +2.76% | Stabilization phase |
Why the volatility? CARS has a beta of 1.76, meaning it moves 76% more dramatically than the overall market. This creates both risk and opportunity for attentive traders.
🔮 Price Forecast: 2025-2030 Growth Trajectory
Based on current analyst projections and industry trends:
2025 (Year-End): $14-16 → HOLD/BUY DIPS
The remainder of 2025 shows consolidation potential with upside toward $16 if Q3 earnings beat expectations.
2026: $17-19 → STRONG BUY
Analyst consensus targets $17.30 average price representing 32% upside from current levels.
2028: $25-30 → ACCUMULATE
Medium-term growth driven by digital automotive adoption and market share gains.
2030: $50-60 → LONG-TERH HOLD
Long-term projections suggest $56.63 by 2030 as automotive retail completes its digital transformation.
Verdict: CURRENTLY A BUY—especially on any dips below $12.50
⚠️ Understanding the Risks: What Could Go Wrong?
Every investment carries risks, and CARS is no exception:
🟢 Positive Signals: Why Analysts Remain Bullish
Despite risks, several factors support the investment thesis:
- Record User Growth: 27.8 million monthly unique visitors and 332 million visits in H1 2025 show strong platform engagement.
- Dealer Adoption: Best sequential customer growth in 3+ years with 19,412 dealer customers demonstrates market acceptance.
- AI Innovation: 57% of buyers report better experience with AI chatbots, positioning CARS well for the digital transition.
- Capital Returns: $70-90 million share repurchase program and consistent buybacks show management confidence.
📋 Step-by-Step: How to Buy Cars.com Inc. (CARS) Shares
| Step | Action | Why It Matters |
|---|---|---|
| 1 | Choose a trading platform | Ensure it offers NYSE access (where CARS trades) |
| 2 | Complete account verification | Typically requires ID and proof of address |
| 3 | Deposit funds | Start with an amount you’re comfortable risking |
| 4 | Search for “CARS” | Use the ticker symbol, not just “Cars.com” |
| 5 | Select order type | Limit orders help control entry price |
| 6 | Review order details | Check commission fees and total cost |
| 7 | Execute purchase | Confirm you’re buying at your desired price |
| 8 | Monitor position | Set price alerts for important levels |
| 9 | Consider dollar-cost averaging | Spread purchases over time to reduce timing risk |
| 10 | Review regularly | Assess performance against your investment goals |
💡 Pocket Option Advantage: Why Traders Choose This Platform
For those considering Pocket Option blog as their trading home, several features make it particularly attractive for CARS investment:
- Minimum Deposit: Just $5 allows you to start building a position, making it accessible for new investors testing strategies.
- Rapid Verification: KYC process completes in minutes with just one document, getting you into the market faster.
- Withdrawal Options: Over 100 methods including cryptocurrencies, e-wallets, and traditional banking options.
- User-Friendly Interface: Designed for beginners but powerful enough for experienced traders watching multiple positions.
The platform’s low barrier to entry combined with comprehensive tools makes it ideal for building a diversified portfolio that includes growth stocks like Cars.com.
🏢 Company Overview: More Than Just Listings
Cars.com Inc. operates the leading digital marketplace and solutions provider for the automotive industry. The company’s ecosystem includes:
- Cars.com Marketplace: #1 automotive marketplace brand connecting buyers and sellers
- Dealer Inspire: Digital experience platform for dealership websites
- AccuTrade: Vehicle valuation and trading technology
- Cars Commerce Media: Advertising and marketing solutions
The company has transformed from a simple classifieds site into a comprehensive technology partner for dealerships, serving over 19,000 customers and reaching nearly 28 million monthly visitors.
Interesting Fact: In 2025, Cars.com’s DealerClub auction platform saw transaction volume surge by 50% quarter-over-quarter as dealers increasingly embraced digital vehicle sourcing methods that would have seemed futuristic just a few years earlier.
🎯 Beginner Trader Action Plan: What to Do Today
Based on our comprehensive analysis, here’s what makes sense for new investors:
- Start Small: Begin with a position size that represents no more than 2-3% of your total portfolio—this limits risk while giving you exposure.
- Watch Earnings Dates: Mark November 6, 2025 on your calendar and consider building positions ahead of this catalyst if the price dips below $12.50.
- Use Dollar-Cost Averaging: Instead of one large purchase, consider buying smaller amounts over several weeks to average your entry price.
- Humorous Reality Check: “Trading CARS stock is like test driving a sports car—thrilling when you accelerate, but make sure you know where the brakes are before you need them!”
The combination of strong analyst support, reasonable valuation, and positioning in a growing digital marketplace makes Cars.com an intriguing opportunity for investors willing to tolerate some short-term volatility for potential long-term gains.
FAQ
Is now a good time to buy CARS stock?
Current levels around $13 represent what many analysts consider a buying opportunity, especially if you believe in the long-term digital transformation of automotive retail.
What's the dividend situation with CARS?
The company doesn't currently pay a regular dividend, preferring to reinvest cash flow into growth initiatives and share repurchases.
How does Cars.com make money?
Primary revenue comes from subscription fees paid by dealerships for listing vehicles and accessing premium tools, plus advertising and transaction fees from ancillary services.
What are the main competitors to Cars.com?
Key competitors include CarGurus, AutoTrader, TrueCar, and increasingly, digital offerings from manufacturers and large dealer groups.
How volatile is CARS stock typically?
Quite volatile—with a beta of 1.76, it tends to move about 76% more than the overall market, creating both risk and opportunity for traders.
Signals
Sign up for more like this
Customize your newsfeed with content you're actually interested in — get up-to-date personalized newsletter in your inbox.
Your comment
Comments are pre-moderated to ensure they comply with our blog guidelines.