Cars.com Inc is a comprehensive online automotive marketplace that connects car buyers and sellers, offering a platform for new and used vehicle listings, dealer services, and consumer resources. The company provides a suite of tools and services designed to simplify the car shopping experience, including reviews, research materials, and financing options. By leveraging technology and data-driven insights, Cars.com helps users make informed decisions throughout the car purchasing process while also assisting dealerships in reaching a wider audience and enhancing their online presence. Read More
Richmond, VA – September 26, 2025 – CarMax, Inc. (NYSE: KMX), the nation's largest retailer of used cars, sent shockwaves through the automotive retail sector today, reporting a dismal second-quarter fiscal year 2026 earnings that significantly missed analyst expectations. The company announced diluted earnings per share (EPS) of just $0.64 for
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Richmond, VA – September 25, 2025 – CarMax Inc. (NYSE: KMX), the nation's largest retailer of used cars, experienced a dramatic stock plunge today following the release of its fiscal second-quarter earnings report for 2025. The company's shares plummeted by as much as 25% during trading, settling around a 19-23% decline, making
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Cars.com (NYSE:CARS) and the best and worst performers in the online marketplace industry.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
A number of stocks fell in the afternoon session after investor apprehension intensified ahead of a key policy speech and perplexing inflation signals clouded the economic outlook, leading to a wider market retreat from growth-oriented stocks.
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
A number of stocks fell in the afternoon session after markets pulled back as hotter-than-expected wholesale inflation data was released, raising concerns about the future path of interest rates. The U.S. Labor Department reported that the Producer Price Index (PPI), which measures inflation at the wholesale level, jumped 3.3% year-over-year in July, significantly above economists' forecasts of 2.5%. This unexpected increase suggests that cost pressures are building for businesses, which could eventually be passed on to consumers. The hotter-than-expected data prompted investors to scale back bets on an imminent interest rate cut by the Federal Reserve. Higher interest rates can dampen economic activity and negatively affect the valuations of growth-oriented stocks, such as those in the internet sector, leading to a broad market retreat.
Online new and used car marketplace Cars.com (NYSE:CARS) met Wall Street’s revenue expectations in Q2 CY2025, but sales were flat year on year at $178.7 million. Its non-GAAP profit of $0.41 per share was in line with analysts’ consensus estimates.
Shares of online new and used car marketplace Cars.com (NYSE:CARS) jumped 3.5% in the afternoon session after analysts at J.P. Morgan and B. Riley raised their price targets, signaling growing confidence in the online automotive marketplace. On August 11, J.P. Morgan maintained its buy rating on Cars.com and adjusted its price target up from $14 to $15. This followed a similar move from B. Riley, which had boosted its price objective to $22.00 from $21.00 while keeping a 'buy' rating on the stock. This wave of positive analyst sentiment notably overshadowed the company's latest earnings results, which missed consensus estimates for both earnings per share and revenue. According to one report, the stock still increased as the upgrades seemed to fuel investor confidence in the company's market position and future outlook.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Online new and used car marketplace Cars.com (NYSE:CARS) met Wall Street’s revenue expectations in Q2 CY2025, but sales were flat year on year at $178.7 million. Its non-GAAP profit of $0.41 per share was in line with analysts’ consensus estimates.
CARS.COM Q2 2025 earnings: Revenue missed estimates at $178.74M, but EPS beat at $0.41. Dealer growth & record traffic highlight strength. Stock down 2.6% pre-market.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
JPMorgan upgrades Cars.com and downgrades Sonic Automotive, Group 1 Automotive, and Asbury Automotive due to industry headwinds and company-specific risks.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Cars.com (NYSE:CARS) and the best and worst performers in the online marketplace industry.
