Fannie Mae, Freddie Mac shares tumble after conservatorship comments
In a challenging market environment, Cars.com Inc. stock has touched a 52-week low, with shares falling to $11.72. With a market capitalization of $756 million and a P/E ratio of 16.48, the company maintains profitability, reporting earnings of $0.72 per share. According to InvestingPro analysis, the stock appears undervalued at current levels. The online automotive marketplace has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decline of -35.86%. Investors have shown concern as the company navigates through industry-specific difficulties and broader economic pressures, which have contributed to the stock’s downward trajectory to its current low point. The 52-week low serves as a critical marker for the company, indicating a period of bearish sentiment among investors and setting a new benchmark for its potential recovery. InvestingPro analysis reveals the stock’s RSI indicates oversold conditions, while the company maintains a "GOOD" overall financial health score. Discover 13 additional exclusive ProTips and comprehensive analysis in the Pro Research Report.
In other recent news, Cars.com reported fourth-quarter earnings that did not meet analyst expectations, with adjusted earnings per share of $0.49, falling short of the projected $0.56. The company’s revenue for the quarter was $180.43 million, slightly below the expected $183.9 million. Looking forward, Cars.com has projected first-quarter revenue between $178 million and $181 million, which is less than the $184.9 million analysts anticipated. For the full year 2025, the company forecasts revenue of $745 million to $755 million, also below the $757.7 million consensus estimate. Despite these results, CEO Alex Vetter noted strong growth in OEM and National revenue, which increased by 15% year-over-year in the fourth quarter. DA Davidson analysts have adjusted their valuation of Cars.com, reducing the price target to $14.50 from $21.00, while maintaining a Buy rating. This adjustment was made following mixed financial results and a cautious outlook for the upcoming quarters. The company’s AccuTrade Connected product has expanded to approximately 1,000 subscribers, and Cars.com announced a new $250 million share repurchase authorization.
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