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Copart (CPRT) Touches 52-Week High Post Solid Q2 Earnings
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Shares of Copart, Inc. (CPRT - Free Report) touched a fresh 52-week high of $60.74 on Mar 3, up 58.4% from its 52-week low. The stock price retraced slightly to close at $60.49 in the last trading session.
Growth Drivers
Copart has been seeing its stock price rise steadily after it reported its second-quarter fiscal 2017 earnings. The company reported 28.9% higher adjusted earnings in the quarter compared with the year-ago figure. Net income on a reported basis and revenues also grew year over year.
Copart is focused on location expansion to manage increasing volumes and undertakes such initiatives regularly. In Feb 2017, the company announced expansion plans at its San Jose, CA location as well as a new location at each, Illinois and Newbury, UK. Copart expects to expand its existing locations further as well as acquire or develop new ones with its existing cash balance. The company has over 60 expansion targets worldwide.
Copart also undertakes occasional share repurchase programs to boost shareholder returns. In fiscal 2016, the company repurchased 11.3 million shares for a weighted average price of $39.29. The company has 44,543,199 shares available under its current authorized repurchase program of 98 million shares.
Copart has outperformed the Zacks categorized Auction and Valuation Services industry in the last three months. The stock gained over 7.5% in this period, while the industry saw a 0.9% increase.
However, Copart is exposed to currency fluctuations as the company operates in a number of markets. Moreover, improving safety features in vehicles will likely have a negative impact on Copart’s future earnings. As safety features improve, the accident rate and hence, supply of salvage vehicles is expected to reduce which could affect Copart’s inventory levels.
Estimate Revisions Show Potency
Over the last month, the Zacks Consensus Estimate for Copart rose 1.4% to 72 cents per share for third-quarter fiscal 2017 and 1.6% to $2.50 for full year. This represents a 12.5% and 19% year-over-year rise, respectively.
Honda has an expected long-term growth rate of 26%.
General Motors has an expected long-term growth rate of 9.4%.
Fiat has an expected long-term growth rate of 21.70%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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Copart (CPRT) Touches 52-Week High Post Solid Q2 Earnings
Shares of Copart, Inc. (CPRT - Free Report) touched a fresh 52-week high of $60.74 on Mar 3, up 58.4% from its 52-week low. The stock price retraced slightly to close at $60.49 in the last trading session.
Growth Drivers
Copart has been seeing its stock price rise steadily after it reported its second-quarter fiscal 2017 earnings. The company reported 28.9% higher adjusted earnings in the quarter compared with the year-ago figure. Net income on a reported basis and revenues also grew year over year.
Copart is focused on location expansion to manage increasing volumes and undertakes such initiatives regularly. In Feb 2017, the company announced expansion plans at its San Jose, CA location as well as a new location at each, Illinois and Newbury, UK. Copart expects to expand its existing locations further as well as acquire or develop new ones with its existing cash balance. The company has over 60 expansion targets worldwide.
Copart also undertakes occasional share repurchase programs to boost shareholder returns. In fiscal 2016, the company repurchased 11.3 million shares for a weighted average price of $39.29. The company has 44,543,199 shares available under its current authorized repurchase program of 98 million shares.
Copart has outperformed the Zacks categorized Auction and Valuation Services industry in the last three months. The stock gained over 7.5% in this period, while the industry saw a 0.9% increase.
However, Copart is exposed to currency fluctuations as the company operates in a number of markets. Moreover, improving safety features in vehicles will likely have a negative impact on Copart’s future earnings. As safety features improve, the accident rate and hence, supply of salvage vehicles is expected to reduce which could affect Copart’s inventory levels.
Estimate Revisions Show Potency
Over the last month, the Zacks Consensus Estimate for Copart rose 1.4% to 72 cents per share for third-quarter fiscal 2017 and 1.6% to $2.50 for full year. This represents a 12.5% and 19% year-over-year rise, respectively.
Copart, Inc. Price, Consensus and EPS Surprise
Copart, Inc. Price, Consensus and EPS Surprise | Copart, Inc. Quote
Zacks Rank & Key Picks
Copart currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include Honda Motor Co., Ltd. (HMC - Free Report) , General Motors Company (GM - Free Report) and Fiat Chrysler Automobiles N.V. . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Honda has an expected long-term growth rate of 26%.
General Motors has an expected long-term growth rate of 9.4%.
Fiat has an expected long-term growth rate of 21.70%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>