CARS Stock Analysis: Buy, Sell, or Hold?
CARS - Cars.com Inc. Common Stock
$11.36
-0.30 (-2.57%)
▼
HOLD
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 26, 2026
26d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: CARS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: CARS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$22.99
Based on 14.1% avg growth
INTRINSIC VALUE TODAY
$14.27
20.4% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 5.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CARS is currently trading at $11.36, which is considered oversold relative to its 30-day fair value range of $11.81 to $12.53. The stock's valuation (Forward PE: 5.2) is in line with its historical norms (5.4). Remarkably, the market is currently pricing in an annual earnings decline of 1.3% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, CARS is showing sideways momentum. The price is currently testing key support at $11.30. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: CARS has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $16.79 (+44.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, CARS is showing sideways momentum. The price is currently testing key support at $11.30. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: CARS has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $16.79 (+44.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$11.81 -
$12.53
Company Quality Score
46/100
(HOLD)
Options IV Signal
50th percentile
(NORMAL)
Volume Confirmation
HIGH
Confidence Score
59.6%
Protect Your Profits
Holding CARS? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Options fairly priced (IV 50th percentile)
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 44.0% below Wall St target ($16.79)
Fair Price Analysis
30-Day Fair Range
$11.81 -
$12.53
Current vs Fair Value
OVERSOLD
Expected Move (7 Days)
±$1.29
(11.4%)
Support & Resistance Levels
Support Level
$11.31
Resistance Level
$12.59
Current Trend
Sideways
Fundamental Context
Forward P/E (Next Year Est.)
5.23
Wall Street Target
$16.79
(+44.0%)
Revenue Growth (YoY)
1.1%
Earnings Growth (YoY)
-57.1%
Profit Margin
4.2%
Valuation Discount vs History
-1.3% cheaper
PE vs Historical
5.2 vs 5.4
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.3%
(market-implied from PE analysis)
1-Year Target
$11.51
(-1%)
2-Year Target
$11.36
(-3%)
3-Year Target
$11.21
(-4%)
3-Yr Target (if PE normalizes)
(PE: 5→5)
$11.57
(-1%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 24.1%)
$94.86
(+714%)
Base:
(SPY PE: 5.2, Growth: 24.1%)
$22.27
(+91%)
Bear:
(PE: 4.4, Growth: 24.1%)
$18.93
(+62%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (25x PE), but valuation improves significantly next year (5x PE) as earnings recover.
Trailing PE: 25.35 | Current EPS (TTM): $0.46
Bull Case
$25.65
(+120%)
Analyst growth 100.0%, PE expands to 27.9
Base Case
$23.32
(+100%)
Market implied 100.0%, PE stable at 25.4
Bear Case
$7.93
(-32%)
Severe decline -20.0%, PE contracts to 21.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 5.2 to 5.4
Stabilization Target:
$12.03
(+3.2%)
PE Expansion Potential:
+3.2%
Last updated: January 30, 2026 5:44 PM ET
Data refreshes hourly during market hours. Next update: 6:44 PM
Data refreshes hourly during market hours. Next update: 6:44 PM
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Technical Signals Check
Is CARS showing a specific setup today?
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Matthew B Crawford
SELL
15000 shares
2025-08-08
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Advanced CARS Option Strategies
Professional options setups generated by AI based on today's CARS price and gamma walls.
