Back to top

Image: Bigstock

Why Copart, Inc. (CPRT) Dipped More Than Broader Market Today

Read MoreHide Full Article

The latest trading session saw Copart, Inc. (CPRT - Free Report) ending at $44.33, denoting a -1.99% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.85%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.96%.

Shares of the company witnessed a gain of 2.75% over the previous month, beating the performance of the Business Services sector with its loss of 3.96% and the S&P 500's loss of 3.02%.

The investment community will be paying close attention to the earnings performance of Copart, Inc. in its upcoming release. The company is expected to report EPS of $0.32, up 23.08% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $977.79 million, showing a 9.45% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.42 per share and revenue of $4.17 billion. These totals would mark changes of +12.7% and +7.65%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Copart, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.16% higher. Currently, Copart, Inc. is carrying a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Copart, Inc. currently has a Forward P/E ratio of 31.9. This represents no noticeable deviation compared to its industry's average Forward P/E of 31.9.

The Auction and Valuation Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 1, finds itself in the top 1% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CPRT in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Copart, Inc. (CPRT) - free report >>

Published in