Cars.com Inc.

NYSE:CARS Stock Report

Market Cap: US$544.5m

Cars.com Future Growth

Future criteria checks 3/6

Cars.com is forecast to grow earnings and revenue by 19.1% and 1.7% per annum respectively. EPS is expected to grow by 22.1% per annum. Return on equity is forecast to be 26.3% in 3 years.

Key information

19.1%

Earnings growth rate

22.09%

EPS growth rate

Interactive Media and Services earnings growth12.5%
Revenue growth rate1.7%
Future return on equity26.26%
Analyst coverage

Good

Last updated05 Jun 2026

Recent future growth updates

Recent updates

Narrative Update • Jun 09

CARS: 2026 Cost Cuts And AI Advertising Will Drive Repricing

Analyst price targets for Cars.com have been adjusted by $1. The change reflects updated assumptions around discount rates, modestly different revenue growth and profit margin expectations, and a slightly lower future P/E that together balance recent Street research views.
Narrative Update • May 26

CARS: Cost Cuts And Buybacks Will Reshape Earnings Profile By 2027

Narrative Update on Cars.com The analyst price target for Cars.com is now aligned with a revised fair value estimate of $13.00, as analysts factor in updated expectations for slower revenue growth, lower profit margins, a higher discount rate, and a reduced future P/E multiple following recent guidance and sector commentary. Analyst Commentary Recent research on Cars.com offers a mixed picture, with some analysts still constructive on the long term setup while others are more cautious after the latest Q4 results and guidance.
Narrative Update • May 11

CARS: 2026 Earnings Execution And Cost Cuts Will Drive Future Repricing

Analysts have trimmed the average Cars.com price target by about $1, reflecting lower revenue growth assumptions and reduced future P/E expectations. These factors are partly offset by slightly higher projected profit margins and a modestly lower discount rate.
Seeking Alpha • May 11

Cars.com: Declining Traffic, Sinking Subscription Base

Summary Cars.com is a value trap despite a post-Q1 earnings rebound. The company faced flat revenue trends and weak dealer retention, which stands in stark contrast to larger rival CarGurus. Traffic is declining, while the company is facing flat dealer counts and flat average revenue (compared to mid-teens growth for CarGurus). Though cheap at a ~5x forward adjusted EBITDA multiple (vs. ~9x for CarGurus), the company has poor execution and few upside catalysts. Read the full article on Seeking Alpha
Narrative Update • Apr 26

CARS: Future Dealer Tech Spending Will Face Longer Competitive And AI Pressures

Analysts have reduced their price targets on Cars.com into a lower $10 to $20 range, citing Q4 results with softer EBITDA, below-consensus 2026 guidance and limited visibility on growth and margins as competitive and AI related pressures build. Analyst Commentary Recent research notes highlight that bearish analysts are resetting expectations for Cars.com, centering their views on softer profitability, cautious multi year guidance and rising competitive and AI related pressures.
Narrative Update • Apr 12

CARS: Future Dealer Tech Investments Will Face Slower Near Term Progress

Analysts have trimmed the blended price target range for Cars.com to around $10 to $20 as they react to Q4 results, lower 2026 EBITDA estimates, and comments pointing to limited visibility on a growth inflection and margins. Analyst Commentary Recent research shows a clear reset in expectations around Cars.com, with multiple bearish analysts cutting price targets and tempering growth assumptions after the Q4 print and 2026 guidance.
Narrative Update • Mar 28

CARS: Softer Margins And 2026 Outlook Will Set Up Future Repricing

The analyst price target for Cars.com has been reduced by $7.50, to $17.50, as analysts factor in softer margin expectations, higher perceived risk, and lower 2026 adjusted EBITDA guidance, alongside weaker ad spending and increased competitive pressure. Analyst Commentary Street research has turned more cautious on Cars.com in the near term, with several firms trimming price targets and, in one case, reducing the rating to Neutral.
Narrative Update • Mar 14

CARS: Future Dealer Tech Investments Will Support Long Term Margin Expansion

Analysts have trimmed their price expectations for Cars.com, with the consolidated target moving lower into a roughly $10 to $20 range. They cited softer EBITDA guidance, reduced 2026 estimates and limited visibility on a growth inflection.
Narrative Update • Feb 28

CARS: Future Dealer Tech Investments Will Reshape Long Term Margin Potential

Narrative Update on Cars.com The updated analyst price target for Cars.com shifts to $10 from $11 as analysts factor in softer revenue growth assumptions, a higher discount rate, and recent Street research citing mixed Q4 results, lower EBITDA, and reduced visibility on future growth and margins. Analyst Commentary Recent Street research reflects a more cautious stance on Cars.com, with several bearish analysts trimming price targets and, in some cases, shifting to more neutral ratings as they reassess the risk and reward trade off.
Analysis Article • Dec 15

Investors Appear Satisfied With Cars.com Inc.'s (NYSE:CARS) Prospects

When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may...
Analysis Article • Oct 12

Does Cars.com (NYSE:CARS) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...
Analysis Article • Sep 24

Is It Time To Consider Buying Cars.com Inc. (NYSE:CARS)?

While Cars.com Inc. ( NYSE:CARS ) might not have the largest market cap around , it saw a significant share price rise...
Analysis Article • Jun 21

Is Cars.com (NYSE:CARS) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Analysis Article • May 29

Cars.com Inc.'s (NYSE:CARS) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights Cars.com to hold its Annual General Meeting on 4th of June CEO T. Vetter's total compensation includes...
Analysis Article • May 16

Earnings Troubles May Signal Larger Issues for Cars.com (NYSE:CARS) Shareholders

Last week's earnings announcement from Cars.com Inc. ( NYSE:CARS ) was disappointing to investors, with a sluggish...
Analysis Article • Feb 28

Investors Give Cars.com Inc. (NYSE:CARS) Shares A 35% Hiding

The Cars.com Inc. ( NYSE:CARS ) share price has fared very poorly over the last month, falling by a substantial 35...
Analysis Article • Dec 23

Does Cars.com (NYSE:CARS) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Analysis Article • Nov 23

Why Investors Shouldn't Be Surprised By Cars.com Inc.'s (NYSE:CARS) 26% Share Price Surge

Cars.com Inc. ( NYSE:CARS ) shareholders would be excited to see that the share price has had a great month, posting a...
Seeking Alpha • Nov 19

Cars.com Contends With Uneven Dealer Demand (Downgrade)

Summary Cars.com recently reported Q3 2024 results, matching revenue estimates but missing earnings projections. Financial trends show slight revenue growth, improved operating income, and strong free cash flow, but gross margins have declined due to higher product and technology expenses. My near-term hold outlook hinges on dealer demand recovery, with potential upside if growth rates improve. But significant recovery may not occur until 2025. Read the full article on Seeking Alpha
Analysis Article • Nov 14

Earnings Troubles May Signal Larger Issues for Cars.com (NYSE:CARS) Shareholders

Despite Cars.com Inc.'s ( NYSE:CARS ) most recent earnings report having soft headline numbers, its stock has had a...
Analysis Article • Sep 18

Is Cars.com (NYSE:CARS) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
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New Narrative • Sep 15

Accu-Trade And OEM Synergies Spark Revenue Surge And Margin Expansion

Expanded market presence and enhanced service offerings through dealer base growth and ARPD maintenance suggest potential for revenue increase.
Seeking Alpha • Aug 28

Cars.com Is Not In The Growth Race

Summary Cars.com is a popular online platform for buying and selling vehicles. Although the company reported strong financial results for Q2 2024, there is no reason to assume CARS will see continuous long-term growth. Cars.com has a solid balance sheet and a good management, but it has had a rough time trying to find revenue growth. As a consequence of this lack of revenue and earnings growth, I believe the stock will also have a hard time providing shareholders with capital appreciation. Read the full article on Seeking Alpha
Analysis Article • Jun 20

Improved Earnings Required Before Cars.com Inc. (NYSE:CARS) Shares Find Their Feet

When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 17x, you may...

Earnings and Revenue Growth Forecasts

NYSE:CARS - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
12/31/2028763651431643
12/31/2027747681481727
12/31/2026729531411647
3/31/202672427136162N/A
12/31/202572320126152N/A
9/30/202572030119145N/A
6/30/202571841114139N/A
3/31/202571845124149N/A
12/31/202471948128153N/A
9/30/202471839144168N/A
6/30/202471325127149N/A
3/31/2024702108121142N/A
12/31/2023689118116137N/A
9/30/2023678120108129N/A
6/30/2023668113121142N/A
3/31/202366324105126N/A
12/31/202265417109129N/A
9/30/2022644497113N/A
6/30/2022636986101N/A
3/31/202262910101118N/A
12/31/202162411119138N/A
9/30/202161821136158N/A
6/30/20216066140161N/A
3/31/2021553-24143160N/A
12/31/2020548-789122139N/A
9/30/2020547-82899118N/A
6/30/2020554-1,24288108N/A
3/31/2020601-1,2246892N/A
12/31/2019607-445N/A101N/A
9/30/2019619-432N/A123N/A
6/30/201963610N/A144N/A
3/31/201965629N/A175N/A
12/31/201866239N/A164N/A
9/30/2018654181N/A160N/A
6/30/2018645186N/A160N/A
3/31/2018633198N/A169N/A
12/31/2017626224N/A186N/A
9/30/2017631121N/A206N/A
6/30/2017634152N/A224N/A
3/31/2017634170N/A217N/A
12/31/2016633176N/A199N/A
9/30/2016624169N/A196N/A
6/30/2016613158N/A183N/A
3/31/2016603154N/A176N/A
12/31/2015597158N/A190N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CARS's forecast earnings growth (19.1% per year) is above the savings rate (3.5%).

Earnings vs Market: CARS's earnings (19.1% per year) are forecast to grow faster than the US market (18.5% per year).

High Growth Earnings: CARS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CARS's revenue (1.7% per year) is forecast to grow slower than the US market (12.7% per year).

High Growth Revenue: CARS's revenue (1.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CARS's Return on Equity is forecast to be high in 3 years time (26.3%)

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/16 18:53
End of Day Share Price 2026/06/16 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

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Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Cars.com Inc. is covered by 14 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Gary PrestopinoBarrington Research Associates, Inc.
Daniel KurnosBenchmark Company
Sameet SinhaB. Riley Securities, Inc.