Cars.com Inc., an audience-driven technology company, that provides solutions for the automotive industry in the United States. Its Cars Commerce platform connects car shoppers with sellers. The company, enable dealers and automotive manufacturers; connect sellers with ready-to-buy shoppers that provide financing tools with instant online loan screening and approvals; and empower shoppers with the resources and digital tools needed to make car buying decisions. It also offers marketplace products, such as marketplace subscription advertising packages to dealer customers; digital solutions, including website creation and platform hosting, vehicle acquisition and valuation, digital retailing, and review and reputation management; and media products comprising display advertising, social selling, digital advertising, and in-market video services, as well as non-subscription digital advertising services to dealer customers. The company serves dealer customers, which included franchise and independent dealers. Its customers are local dealers, OEMs, and other national advertisers and lenders. Cars.com Inc. was founded in 1998 and is based in Chicago, Illinois.

Cars.com Inc.

Hitting fresh 52-week highs of $312 a share on Tuesday, Carvana CVNA stock is sitting on gains of over +50% in 2025 and has soared more than +800% in the last three years. This blazing price performance has outperformed its Zacks Internet-Commerce peers, including e-commerce conglomerates such as Amazon AMZN and MercadoLibre MELI.
Starting to reach lofty growth expectations, investors may be wondering if the rally in Carvana stock will continue with its end-to-end online business model covering every aspect of used-car retailing, from sales, financing, and logistics, to inspections and repairs. Notably, CVNA is only 15% from its all-time high of $370 a share, which came in August of 2021.
Image Source: Zacks Investment Research
Cost-Cutting Initiatives & Strong Financial Results
Attributing to Carvana’s strong financial performance have been the company’s cost-cutting initiatives, including the restructuring of its debt. After several years of insolvency and bankruptcy concerns, Carvana currently has $7.1 billion in total liabilities, which is reassuringly beneath its total assets of $8.87 billion.
Furthermore, Carvana recently posted Q1 EPS of $1.51 in early May, which swung from an adjusted loss of -$0.41 a share in the prior period and crushed expectations of $0.75 by 101%. This came as Q1 sales increased 38% year over year to $4.23 billion and topped estimates of $4.04 billion.
Image Source: Zacks Investment Research
Monitoring Carvana’s Growth Trajectory
Taking market share from competitors such as Auto Trader Group ATDRY and Cars.com CARS, Carvana’s total sales are now expected to increase 31% in fiscal 2025 and are projected to spike another 25% in FY26 to $22.55 billion.
More impressive, annual earnings are currently slated to soar 192% this year to $4.64 per share versus EPS of $1.59 in 2024. Plus, FY26 EPS is projected to increase another 33% to $6.16
Image Source: Zacks Investment Research
Compelling EPS Revisions
More compelling to Carvana’s attractive growth trajectory is that FY25 and FY26 EPS estimates have continued to trend higher in the last week and have now soared 35% and 23% over the last 90 days, respectively.
Image Source: Zacks Investment Research
Bottom Line
While Carvana stock is still trading at a noticeable premium to the broader market at 65.5X forward earnings, the trend of positive EPS revisions has started to level out the company’s P/E valuation. Even better, this does suggest more upside could be in store for Carvana stock with CVNA sporting a Zacks Rank #1 (Strong Buy).
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carvana Co. (CVNA) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
Cars.com Inc. (CARS) : Free Stock Analysis Report
Auto Trader Group (ATDRY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Carvana Stock Keep Soaring to New Highs or is the Rally Overdone?

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of Cars.com Inc (Symbol: CARS) entered into oversold territory, hitting an RSI reading of 26.3, after changing hands as low as $9.56 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 54.1. A bullish investor could look at CARS's 26.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of CARS shares:
Looking at the chart above, CARS's low point in its 52 week range is $9.56 per share, with $21.24 as the 52 week high point — that compares with a last trade of $9.93.
Find out what 9 other oversold stocks you need to know about »
Also see:
CHTR Videos
AMBR YTD Return
FSNB YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Oversold Conditions For Cars.com (CARS)

For Immediate Release
Chicago, IL – April 15, 2025 – Zacks Equity Research shares Griffon Corporation’s GFF, as the Bull of the Day and , Cars.com’s CARS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on — Ford F, General Motors GM and Stellantis STLA.
Here is a synopsis of all five stocks:
Helping to mitigate risk and stabilize financial portfolios or business operations, “diversification” is a key strategy during an economic downturn or market uncertainty, making Griffon Corporation’s stock worthy of consideration.
Amid tariff concerns, Griffon should be able to sustain and even prosper with the diversified holding company having exposure to several sectors as a manufacturer of a wide range of consumer products, from garage doors and shutters to materials for disposable diapers and health care items.
Notably, Griffon’s Zacks Diversified Operations Industry is currently in the top 10% of over 240 Zacks industries, with GFF sporting a Zacks Rank #1 (Strong Buy) and landing the Bull of the Day.
Griffon’s Stellar EPS Growth
Griffon’s diversity has contributed to its resilience and strong profitability with annual earnings expected to increase 11% in fiscal 2025 and projected to soar another 21% in FY26 to $6.90 per share. Furthermore, Griffon’s post-pandemic profitability has been astonishing as FY26 EPS projections would reflect a 325% increase from earnings of $1.62 per share in 2020.
This comes as Griffon’s total sales are slated to dip 1% this year but are forecasted to rebound and rise 3% in FY26 to $2.67 billion. More intriguing is that FY25 and FY26 EPS estimates have continued to trend higher over the last month and are now up 3% and 7% in the last 60 days respectively.
GFF Price Performance & Valuation
Year to date, Griffon stock has dipped 2% but has skyrocketed more than +270% in the last three years to impressively outperform the broader indexes.
With rising EPS estimates suggesting more short-term upside, it's noteworthy that GFF trades at a very reasonable 12.3X forward earnings multiple. Offering a significant discount to the benchmark S&P 500’s 20.4X, GFF also trades nicely beneath its industry average of 15.7X forward earnings with some of the other notable names in the space being 3M and Honeywell International.
Griffon’s Dividend has Increased 22% in the last Five Years
The cherry on top is that GFF offers a respectable 1.02% annual dividend yield with Griffon increasing its dividend seven times in the last five years. Plus, Griffon’s 13% payout ratio suggests there is plenty of room to increase its dividend in the future.
Bottom Line
Diversification will be important for investors as the ongoing trade war between the U.S. and other countries could lead to an economic backdrop that causes a mild global recession. Reassuringly, Griffon Corporation can provide this diversity and in addition to its strong buy rating, GFF has an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
With higher tariffs on imported vehicles likely to raise the cost of new and used cars, Cars.com’s stock has plummeted more than 30% this year.
Trading near its 52-week low of $9 a share, there could be more downside risk for the Chicago-based online automotive platform, which offers research tools for new and used vehicle listings.
To that point, the lingering supply chain effects of the pandemic combined with higher tariffs have reduced the availability of used cars, with there being fewer trade-ins and off-lease vehicles.
Declining EPS Revisions
On the surface, Cars.com’s EPS growth may be luring with annual earnings expected to rise 14% this year and projected to increase another 22% in fiscal 2026 to $2.40 per share. However, it’s noteworthy that FY25 and FY26 EPS estimates have declined over 12% and 7% in the last 60 days respectively.
Lower Investor Sentiment
Leading to lower investment sentiment for Cars.com’s stock is that the company has missed earnings expectations for six consecutive quarters with an average EPS surprise of -29.81% in its last four quarterly reports. Notably, Cars.com has missed sales estimates in two of the last four quarters.
Increased Competition & Slower Sales Growth
Although Cars.com has gained much notoriety since becoming independent and going public in 2017, the company has yet to reach a billion dollars in annual sales.
Historically low inventory levels and higher vehicle prices have weighed on Cars.com’s revenue growth as consumer demand continues to plunge.
Furthermore, Cars.com has faced increased competition in the automotive marketplace from rivals like Carvana, which is expected to bring in over $20 billion in annual sales by FY26.
Bottom Line
Increased competition has added to macroeconomic concerns, landing Cars.com stock a Zacks Rank #5 (Strong Sell) and the Bear of the Day. While it may be too soon to call Cars.com's stock a value trap, there appears to be more downside risk ahead and investors may want to be cautious even with CARS trading at just 5.7X forward earnings.
Additional content:
Ford Stock Near 52-Week Low: Time to Buy or Time to Bail?
U.S. legacy automaker Ford is having a tough run on the bourses. The stock is down roughly 24% over the past year. Shares closed at $9.33 in the last trading session, close to its 52-week low of $8.44.
Meanwhile, Ford’s closest rival, General Motors, has risen 2.2% in the past year. Italian-American automaker Stellantis, on the other hand, has lost 66% in the same timeframe.
Ford is reeling under persistent losses from its electric vehicle (EV) business, with no clear turnaround in sight. Further, declining ICE (internal combustion engine) business profitability and volumes, along with rising risks from Trump’s tariff policies, are playing spoilsports.
The stock is currently trading below its 50 and 200-day SMA, signaling bearish trend. It has a Momentum Score of C.
From a valuation standpoint, Ford looks cheap at the first glance. However, ongoing headwinds may be weighing on investor sentiment and contributing to the low multiples. Its 12-month forward sales multiple is lower than industry levels. The metric stands at 0.23 for Ford, compared with 0.24 for General Motors and 0.15 for Stellantis.
Ford Model e & Blue Units Show Signs of Strain
Ford’s Model e division (focused on EVs) remains under pressure, hit by intense competition, pricing challenges and high development costs tied to next-gen EVs. Losses from the segment widened to $5.07 billion in 2024 from $4.7 billion in 2023. Ford now expects a deeper loss of $5-5.5 billion for the full year.
Meanwhile, its Ford Blue division is also showing signs of weakness. The company projects 2025 EBIT of $3.5-4 billion, down from $5.3 billion in 2024. Lower ICE vehicle sales, an unfavorable product mix and foreign exchange headwinds are expected to weigh on performance.
F’s Muted 2025 Outlook Doesn’t Factor in Tariff Woes
Trump’s 25% tariffs on imports from Mexico and Canada pose challenges for Ford. CEO Jim Farley has already warned that tariffs would bring “a lot of cost and a lot of chaos” to the U.S. auto industry.
These tariffs are expected to disrupt supply chains, raise raw material costs and ultimately increase vehicle prices — potentially hurting demand, sales and profits. However, the bigger impact may not come from the 25% levy on imported vehicles alone but from an expected additional 25% tariff on imported auto parts next month. While Ford manufactures around 82% of the vehicles it sells in the United States domestically, only about one-third of those cars are made with domestic parts — leaving the company vulnerable to rising component costs.
Importantly, the guidance doesn’t even factor in potential policy shifts under Trump. For the full year, Ford expects adjusted EBIT between $7 billion and $8.5 billion, down from $10.2 billion in 2024. While strength in Ford Pro and Ford Credit may offer some support, it’s unlikely to fully offset rising pressure from Model e, Blue, warranty costs and generous incentives — all of which threaten to drag down margins and free cash flow. Adjusted FCF is projected in the range of $3.5–$4.5 billion, a sharp drop from $6.7 billion in 2023.
First-quarter 2025 results are likely to be particularly weak. Ford expects first-quarter 2025 adjusted EBIT to break even, a sharp drop from $2.7 billion in the first quarter of 2024 and $2.1 billion in the fourth quarter of 2024 due to lower volumes, a 20% production cut and plant launch activities.
Is Ford’s Attractive Dividend Yield at Risk?
Ford’s high dividend yield of more than 6% is quite appealing to income-focused investors, especially when compared to the S&P 500’s average of 1.38%. The company targets a payout ratio of 40-50% of free cash flow, reinforcing its commitment to shareholder returns. However, that payout could come under pressure. Tariffs—especially when extended to auto parts—will raise costs, squeeze margins and hurt profits. Ford may have to reassess its dividend policy if tariff burden persists long.
That said, a near-term cut appears unlikely. Ford’s strong liquidity position provides a cushion, with $28 billion in cash and around $47 billion in total liquidity at the end of 2024. This financial buffer allows the company time to navigate policy uncertainty. Still, investors relying on the dividend should watch for developments, as prolonged earnings pressure could eventually challenge the sustainability of Ford’s generous yield.
What Do Estimates for F Say?
The Zacks Consensus Estimate for Ford’s 2025 sales and EPS implies a decline of 5% and 27%, respectively. Discouragingly, its EPS estimates have been southbound in the past 60 days.
Ford is Best Avoided Now
Despite low valuation and strong dividend yield, Ford faces too many headwinds to ignore. Widening EV losses, weakening ICE performance and looming tariffs threaten margins and earnings. Its 2025 outlook is already soft and doesn’t even account for tariff policy shifts. While its liquidity cushion may delay drastic actions like a dividend cut, ongoing operational struggles and weak near-term prospects suggest limited upside. Until there is more clarity, investors should avoid Ford and wait for a more stable setup.
Ford stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Cars.com Inc. (CARS) : Free Stock Analysis Report
Griffon Corporation (GFF) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Griffon and Cars.com's have been highlighted as Zacks Bull and Bear of the Day

With higher tariffs on imported vehicles likely to raise the cost of new and used cars, Cars.com’s CARS stock has plummeted more than 30% this year.
Trading near its 52-week low of $9 a share, there could be more downside risk for the Chicago-based online automotive platform, which offers research tools for new and used vehicle listings.
To that point, the lingering supply chain effects of the pandemic combined with higher tariffs have reduced the availability of used cars, with there being fewer trade-ins and off-lease vehicles.
Declining EPS Revisions
On the surface, Cars.com’s EPS growth may be luring with annual earnings expected to rise 14% this year and projected to increase another 22% in fiscal 2026 to $2.40 per share. However, it’s noteworthy that FY25 and FY26 EPS estimates have declined over 12% and 7% in the last 60 days respectively.
Lower Investor Sentiment
Leading to lower investment sentiment for Cars.com’s stock is that the company has missed earnings expectations for six consecutive quarters with an average EPS surprise of -29.81% in its last four quarterly reports. Notably, Cars.com has missed sales estimates in two of the last four quarters.
Increased Competition & Slower Sales Growth
Although Cars.com has gained much notoriety since becoming independent and going public in 2017, the company has yet to reach a billion dollars in annual sales.
Historically low inventory levels and higher vehicle prices have weighed on Cars.com’s revenue growth as consumer demand continues to plunge.
Furthermore, Cars.com has faced increased competition in the automotive marketplace from rivals like Autotrader ATDRY, CarGurus CARR, and CarMax KMX along with Carvana CVNA, which is expected to bring in over $20 billion in annual sales by FY26.
Bottom Line
Increased competition has added to macroeconomic concerns, landing Cars.com stock a Zacks Rank #5 (Strong Sell) and the Bear of the Day. While it may be too soon to call Cars.com's stock a value trap, there appears to be more downside risk ahead and investors may want to be cautious even with CARS trading at just 5.7X forward earnings.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cars.com Inc. (CARS) : Free Stock Analysis Report
CarMax, Inc. (KMX) : Free Stock Analysis Report
Carvana Co. (CVNA) : Free Stock Analysis Report
Auto Trader Group (ATDRY) : Free Stock Analysis Report
Carrier Global Corporation (CARR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Bear of the Day: Cars.com (CARS)

MercadoLibre MELI reported fourth-quarter 2024 earnings of $12.61 per share, which beat the Zacks Consensus Estimate by 73.69% and surged 288% year over year. Revenues rose 24% on a year-over-year basis (75% on an FX-neutral basis) to $6.05 billion. The top line surpassed the Zacks Consensus Estimate by 3.7%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Total revenues were driven by accelerating commerce and fintech revenues, which grew 44.4% and 28.6% year over year to $3.5 billion and $2.5 billion, respectively. In the commerce segment, strong momentum across Brazil (up 32% year over year) and Mexico (up 28% year over year) contributed well to the reported results. Trends in Argentina are encouraging. Items sold grew 18% year over year in the fourth quarter.
In the Fintech segment, Net Promoter Score hit record levels in Brazil and Mexico in the fourth quarter of 2024 and was the highest since 2021 in Argentina. This drove greater adoption, with strong trends across all three countries. Monthly Active Users rose 34% year over year to 61.2 million (with even faster growth among heavy users). Assets Under Management grew 129% year over year to $10.6 billion (due to the success of our yielding account) and Insurtech active users surpassed 10 million for the first time.
Revenues from MELI’s advertising services grew 41% on a year-over-year basis and were equivalent to almost 2.1% of gross merchandise volume (GMV) at the end of the fourth quarter.
Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company. MercadoLibre’s rising GMV was another positive.
MercadoLibre, Inc. Stock Price, Consensus and EPS Surprise
MercadoLibre, Inc. price-consensus-eps-surprise-chart | MercadoLibre, Inc. Quote
MELI Quarter in Detail
Brazil: Net revenues in the fourth quarter came in at $3.31 billion (51.8% of the total revenues), rising 37.7% year over year.
Argentina: The market generated revenues of $1.3 billion (21.6% of the top line), which grew 31% year over year.
Mexico: Net revenues in the reported quarter were $1.34 billion (22.2% of the total revenues), which soared 43% year over year.
Other countries: The markets generated revenues of $269 million (4.4% of the total revenues), reflecting an increase of 40.1% on a year-over-year basis.
Key Metrics for MELI
GMV of $14.5 billion jumped 8% year over year and 56% on FX-neutral basis year over year. The figure, however, missed the consensus mark by 1.08%.
The number of successful items sold was 525 million, up 27.1% year over year.
TPV surged 33% year over year and 49% on an FX-neutral basis to $58.9 billion. This was driven by the strong performance of Mercado Pago. The figure missed the Zacks Consensus Estimate by 1.47%.
Total payment transactions increased 43.3% year over year to $3.32 billion.
MercadoLibre Operating Details
For the fourth quarter, the gross margin contracted 110 basis points (bps) from the year-ago quarter to 45.4%.
Operating expenses were $1.92 billion, which increased 12.5% year over year. As a percentage of revenues, the figure contracted 710 bps year over year to 31.8% in the reported quarter.
The operating margin expanded 590 bps from the year-ago period to 13.5%. This margin expansion was driven by strong execution and disciplined cost management across its logistics network, efficiencies in collection fees, and operating leverage in Sales & Marketing and Product Development. These factors more than offset the margin headwind caused by provisions for doubtful accounts.
Balance Sheet
As of Dec. 31, 2024, cash and cash equivalents were $2.63 billion, up from $2.16 billion as of Sept. 30, 2024.
Short-term investments were $1.05 billion as of Dec. 31, 2024. Net debt was $2.04 billion at the end of the quarter.
MELI Zacks Rank & Other Stocks to Consider
Currently, MercadoLibre carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are Bath and Body Works BBWI, Beacon Roofing Supply BECN and Cars.com CARS, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bath and Body Works, Beacon Roofing Supply and Cars.com are scheduled to report their respective fourth-quarter 2024 results on Feb. 27.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
Cars.com Inc. (CARS) : Free Stock Analysis Report
Bath & Body Works, Inc. (BBWI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MercadoLibre's Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Alibaba BABA shares opened 10% higher in Hong Kong on Feb. 21 to reach their highest level in more than three years, after the company reported third-quarter fiscal 2025 revenues of $38.3 million, which beat the Zacks Consensus Estimate by 0.51%. The company said it plans to invest more in e-commerce and AI.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
In domestic currency, revenues of RMB 280.1 billion increased 8% year over year.
The top-line increase was driven by improved monetization of Taobao and Tmall Group, which included gross merchandise value (GMV)-based service charges and merchant adoption of Quanzhantui, Alibaba’s marketing tool. Strength across the cloud business, driven by public cloud products and AI-integrated products, contributed well.
The Chinese e-commerce giant's U.S-listed shares jumped 8% in their biggest one-day percentage gain since September last year following its earnings on Thursday. Shares closed at their highest level in more than three years at $135.97.
BABA reported non-GAAP earnings of $2.93 per ADS, which missed the Zacks Consensus Estimate by 4.87%. In domestic currency, Alibaba reported earnings of RMB 21.39, up 12.8% year over year.
Alibaba Group Holding Limited Price, Consensus and EPS Surprise
Alibaba Group Holding Limited price-consensus-eps-surprise-chart | Alibaba Group Holding Limited Quote
Revenues by Segments
Taobao and Tmall Group (48.6% of total revenues): Alibaba generated RMB 100.79 billion ($13.8 billion) of revenues from the segment, which increased 9% from the year-ago quarter’s figure. This was driven by growth in online GMV and improvement in take rate year over year.
The number of 88VIP members, BABA’s highest-spending consumer group, continued to increase by double digits year over year, reaching 49 million during the quarter. The company will continue to grow the subscription of 88VIP membership by providing attractive benefits and premium services.
China Commerce Retail (95.2% of Taobao and Tmall revenues): The business vertical’s revenues were RMB 129.5 billion ($17.7 billion), reflecting a 5% increase from the year-ago quarter. The increase was attributed to customer management revenues, which increased 9% year over year to RMB 100.7 billion ($13.8 billion) due to online GMV growth, partially offset by a decline in direct sales and other revenues, which were down 9% year over year to RMB 28.7 billion ($3.9 billion) due to lower sales of consumer electronics and appliances.
China Commerce Wholesale (4.8% of Taobao and Tmall revenues): The business generated revenues of RMB 6.57 billion ($901 million), which grew 24% on a year-over-year basis. This upside was attributed to increasing revenues from value-added services.
During the second quarter of fiscal 2025, BABA made strategic investments to enhance user experience. Starting Sept. 1, a software service fee based on the GMV of the transaction was implemented, and the annual service fee for Tmall merchants was canceled.
Alibaba International Digital Commerce Group (13.5% of total revenues): The segment comprises Lazada, AliExpress, Trendyol, and other businesses operating in the international retail and wholesale markets. Alibaba generated RMB 37.7 billion ($5.17 billion) in revenues from the segment, which grew 32% from the year-ago quarter, primarily driven by the strong performance of cross-border businesses.
International Commerce Retail (83.6% of international revenues): Revenues were RMB 31.5 billion ($4.32 billion), up 36% from the year-ago quarter’s figure, owing to the strong momentum in AliExpress’ Choice and Trendyol.
International Commerce Wholesale (16.4% of international revenues): The business generated revenues of RMB 6.2 billion ($850 million), which increased 18% on a year-over-year basis.
During the third quarter of fiscal 2025, BABA announced a plan to form a joint venture with Shinsegae in South Korea, which will operate AliExpress Korea and Gmarket, to better serve consumers in South Korea and enhance its competitiveness.
Local Services Group (6.1% of total revenues): The segment’s revenues grossed RMB 16.98 billion ($2.32 billion), up 12% from the year-ago quarter. The rise was driven by strong order growth in the Ele.me and Amap businesses.
Cainiao Smart Logistics Network (10.1% of total revenues): Revenues were RMB 28.2 billion ($3.86 billion), down 1% from the year-ago quarter. This was due to the ongoing restructuring of its e-commerce businesses, taking on certain logistics platform roles. Cainiao will continue to focus on building its global smart logistics network and make its end-to-end logistics capabilities available to its own e-commerce businesses as well as third parties.
Cloud Intelligence Group (11.3% of total revenues): The segment generated revenues of RMB 31.7 billion ($4.34 billion), up 13% from the year-ago quarter. During the quarter, overall revenues, excluding Alibaba-consolidated subsidiaries, achieved double-digit year-over-year growth of 11%. This momentum was primarily driven by double-digit public cloud revenue growth, including the growing adoption of AI-related products.
During the third quarter of fiscal 2025, BABA open-sourced Qwen2.5-VL, BABA’s next-generation multi-modal model, and launched its flagship MoE-based model Qwen2.5-Max. Both models deliver globally leading results across recognized benchmarks and are available to users and enterprises through Qwen Chat and Bailian platform.
Since August 2023, the company has open-sourced various large models under the Qwen family. As of Jan. 31, 2025, more than 90,000 derivative models had been developed on Hugging Face based on the Qwen family of models, making it one of the largest AI model families worldwide.
Digital Media and Entertainment Group (1.9% of total revenues): Revenues were RMB 5.43 billion ($745 million), up 8% from the year-ago quarter’s figure.
All Others (19% of Total Revenues): The segment’s revenues were RMB 53.1 billion ($7.27 billion), up 13% from the year-ago quarter.
Operating Details
In the fiscal third quarter, sales and marketing expenses were RMB 42.6 billion ($5.84 billion), up 26.3% from the year-ago quarter. As a percentage of total revenues, the figure expanded 230 basis points (bps) to 15.2%.
General and administrative expenses were RMB 10.85 billion ($1.48 billion), down 3.6% from the year-ago quarter. As a percentage of total revenues, the figure contracted 50 bps year over year to 3.9%.
Product development expenses were RMB 14.66 billion ($2 billion), up 8.7% year over year. As a percentage of total revenues, the figure remained flat year over year.
Operating income was RMB 41.2 billion ($5.64 billion), up 83% year over year, primarily due to a decrease in impairment of intangible assets as well as an increase in adjusted EBITDA. The operating margin expanded 50 bps to 25.3%.
Adjusted EBITDA increased 4% from the year-ago quarter to RMB 62 billion ($8.5 billion).
Balance Sheet & Cash Flow
As of Dec. 31, 2024, cash and cash equivalents were $22.3 billion (RMB 162.78 billion), down from $26.076 billion (RMB 182.99 billion) as of Sept. 30, 2024.
Short-term investments totaled $32.46 billion (RMB 236.9 billion) at the end of the third quarter of fiscal 2025, up from $22.16 billion (RMB 155.5 billion) in the previous quarter.
Alibaba generated $9.71 billion (RMB 70.9 billion) in cash from operations, up from $4.48 billion (RMB 31.43 billion) in the previous quarter.
BABA’s free cash flow was $5.34 billion (RMB 39.02 billion).
Zacks Rank & Stocks to Consider
Alibaba currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are Bath and Body Works BBWI, Beacon Roofing Supply BECN and Cars.com CARS, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bath and Body Works, Beacon Roofing Supply and Cars.com are scheduled to report their respective fourth-quarter 2024 results on Feb. 27.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
Cars.com Inc. (CARS) : Free Stock Analysis Report
Bath & Body Works, Inc. (BBWI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alibaba's Q3 Earnings Miss Estimates, Revenues Improve Y/Y

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of Cars.com Inc (Symbol: CARS) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $15.66 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 53.8. A bullish investor could look at CARS's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of CARS shares:
Looking at the chart above, CARS's low point in its 52 week range is $14.82 per share, with $21.24 as the 52 week high point — that compares with a last trade of $15.66.
Find out what 9 other oversold stocks you need to know about »
Also see:
Funds Holding ALLR
Institutional Holders of NMRA
Funds Holding MRVL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Cars.com is Now Oversold (CARS)

Sales at U.S. retailers bounced back in July following June’s dip as Americans splurged on nonobligatory items like cars, furniture and appliances, to name a few. Consumers opened their wallets despite financial stress due to elevated interest rates and a weakening labor market.
Anyhow, the unprecedented increase in consumer spending quelled recession fearmongering. What’s more, with inflationary pressure subsiding, consumer outlays are further likely to increase. Thus, stocks such as Best Buy Co., Inc. BBY, Brinker International, Inc. EAT and Cars.com Inc. CARS are well-poised to directly benefit from the promising economic backdrop and an uptick in retail sales.
Retail Sales Post Biggest Gain in 1 ½ Years
Retail sales increased 1% month over month in July, following a downwardly revised drop of 0.2% in June, per the Census Bureau of the Commerce Department. Retail sales, thus, notched its biggest jump in a year and a half and easily surpassed analysts’ expectations of an increase of 0.3%.
Source: Commerce Department’s Census Bureau
Retail sales, excluding gasoline, food, building materials and automobiles advanced by 0.3% last month after a 0.9% increase in the month before. Nonetheless, overall retail sales jumped 2.7% annually in July, while total sales from May through July were up 2.4% compared to the same period a year ago.
Broad-Based Retail Gains
Retail sales increased 3.6% at motor vehicle and part dealers. Automobile dealers had to endure a nationwide cyberattack on their software systems that hampered sales in June. However, many of the sales deals were finalized in July.
Sales at electronics and appliance stores increased 1.6% in July, while sales were up 0.9% at food and beverage outlets. Receipts at groceries, pharmacies, home centers, and electronic retailers also improved in July. Meanwhile, sales at online retailers rose 0.2% last month after jumping 2.2% in June, thanks to Amazon.com, Inc.’s AMZN annual Prime Day sales.
Cooling Inflationary Pressure
Consumer spending is further expected to improve and boost sales at retail outlets in the near term. This is because price pressures are ebbing, giving Americans the wherewithal to shell out.
The consumer price index increased 2.9% annually in July, less than June’s yearly rate of 3%, added the US Bureau of Labor Statistics. The annual rate increased at the lowest pace since March 2021. Similarly, the producer price index increased 2.2% year over year in July, less than June’s 12-month inflation rate of 2.7% (read more: Tamed Inflation Bolsters September Rate Cut: PHM, MU, ATO to Gain).
3 Likely Winners From Upbeat Retail Sales: BBY, EAT, CARS
With retail sales recovering last month and further poised to improve banking on soft inflation, placing bets on fundamentally sound retailers seems prudent at the moment. Lest we forget, retail behemoth Walmart Inc. WMT has already echoed the theme of solid consumer spending and raised its outlook in the recent quarterly earnings report (read more: Walmart Share Price on Upswing Before Q2 Earnings: Time to Buy?).
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). Such stocks also have a VGM Score of A or B. Here, V stands for Value, G for Growth, and M for Momentum; the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.
Best Buy – Retailer of Consumer Electronics
Best Buy’s initiatives to invest in systems and boost omni-channel capabilities should certainly lift its profit margins. Best Buy has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for BBY’s current-year earnings has increased 1.3% over the past 90 days. The company’s expected earnings growth rate for the next five years is 5.1%.
Brinker International – Known for Brands such as Chili’s
Brinker International, renowned for providing a casual dining experience, is benefiting immensely from its traffic-driving initiatives and effective menu pricing. Brinker International has a Zacks Rank #1 and a VGM Score of A.
The Zacks Consensus Estimate for EAT’s current-year earnings has increased 5.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 15.4%.
Cars.com – An Online Automotive Platform
Cars.com’s audience-driven technology has quite successfully simplified the purchasing and selling vehicle procedures. CARS has a Zacks Rank #2 and a VGM Score of A.
The Zacks Consensus Estimate for CARS’s current-quarter earnings has increased 1.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 13.8%.
Shares of Best Buy, Brinker International, and Cars.com have gained 2.2%, 104.4%, and 27%, respectively, over the past two years.
Image Source: Zacks Investment Research
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Cars.com Inc. (CARS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Stocks to Play the Rebound in Retail Sales: BBY, EAT, CARS

In trading on Monday, shares of Cars.com Inc (Symbol: CARS) crossed below their 200 day moving average of $18.26, changing hands as low as $17.92 per share. Cars.com Inc shares are currently trading off about 5.9% on the day. The chart below shows the one year performance of CARS shares, versus its 200 day moving average:
Looking at the chart above, CARS's low point in its 52 week range is $14.82 per share, with $21.24 as the 52 week high point — that compares with a last trade of $18.14.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
Also see:
Funds Holding EPAM
FCG Options Chain
FGBI Dividend Growth Rate
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Two Hundred Day Moving Average Cross - CARS

In trading on Tuesday, shares of Cars.com Inc (Symbol: CARS) crossed above their 200 day moving average of $18.57, changing hands as high as $18.60 per share. Cars.com Inc shares are currently trading up about 3.4% on the day. The chart below shows the one year performance of CARS shares, versus its 200 day moving average:
Looking at the chart above, CARS's low point in its 52 week range is $14.82 per share, with $22.84 as the 52 week high point — that compares with a last trade of $18.53.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
Also see:
CRDL Average Annual Return
NYT market cap history
EQT Dividend History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.