5 Best Small Cap Automotive Stocks To Buy

2. Cars.com Inc. (NYSE:CARS)

Number of Hedge Fund Holders: 17

Cars.com Inc. (NYSE:CARS) operates a digital marketplace for the automotive industry. The company facilitates connections between dealers and manufacturers with potential buyers, offering financing tools for instant online loan screening and approvals. Cars.com Inc. (NYSE:CARS) is one of the top automotive stocks to monitor. On May 4, the company reported a Q1 GAAP EPS of $0.17 and its revenue came in at $167.1 million, up 5.6% compared to the prior-year quarter. The number of Average Monthly Unique Visitors (UVs) increased by 7% year-over-year, reaching 28.5 million. Additionally, web traffic saw an 11% year-over-year growth, amounting to 164.8 million views.

According to Insider Monkey’s first quarter database, 17 hedge funds were bullish on Cars.com Inc. (NYSE:CARS), compared to 14 funds in the earlier quarter. Bruce Emery’s Greenvale Capital is the leading stakeholder of the company, with 5 million shares worth $96.50 million.

Here is what Spree Capital Advisers has to say about Cars.com Inc. (NYSE:CARS) in its Q1 2021 investor letter:

“Our businesses are doing well, and thus we only made one minor adjustment to the portfolio. In the first quarter we sold Cars.com (CARS) in order to redeploy funds elsewhere. Our return on CARS of 40% hit our bogey over our nearly two-year holding period but extracted a modest opportunity cost as it underperformed the rest of the portfolio. Our returns and exposure continue to be weighted towards high quality businesses with long duration runways for scalable revenue and earnings growth.”