Internet stocks are becoming more and more popular with time. Dot.com was one of the firsts, which skyrocketed. While it happened 20 years ago, during this time, the internet economy has grown and matured. Some of the online pioneers are now corporate giants, such as Amazon or AliExpress.
While Wall Street analysts mostly discuss the market’s major players, there are plenty of less well-known stocks. That doesn’t mean that they are less profitable, though. Internet stocks are an excellent choice if you know where to invest. And according to experts, Cars.com is a strong buy.
Cars.com is one of the web’s premier sites for buying and selling cars. This company was founded in 1998. It has been on the market quite a long time, and presently it holds a market cap of $767 million. Cars.com is also the second-largest automotive classified ad site online.
Why’s This Stock a Strong Buy?
The company’s EPS report in the third quarter of 2019 has beaten expert estimations by 10%. Its revenue was also more by 2% at $152.09 million. However, the other numbers, while still high than expected, were lower compared to past years.
The stock fell sharply when the company announced a steep miss in the second quarter’s results, losing 44% last August. While it still has not recouped that loss, during the third quarter, the company stopped the downfall.
The experts were waiting for the new report about revenue. And Wall Street is also waiting to see how CARS will address the upper management churn. The company lost its top financial executive, Becky Sheehan, who announced her resignation in mid-December in 2019. Her departure was one of the reasons for the stock’s volatility in recent weeks.
Still, B. Riley FBR analyst Lee Krowl thinks that this stock is a good investment even with all these uncertainties. He set its price target at $18. If the target is met, the shareholders will see an impressive 70% upside.