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Copart Expands in Kentucky With Vincent Auto Acquisition

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Copart, Inc. (CPRT - Free Report) acquired Greenville, KY-based online auctioning platform, Vincent Auto Solutions (“VAS”) that engages in the remarketing of total-loss, fleet and damaged vehicles. The VAS acquisition further strengthened Copart’s footprint in western Kentucky while gaining an experienced and strong management team, with well-established customer relationships.

The acquisition is in sync with Copart’s expansion strategy to manage increasing volume across the United States. Apart from the acquisition, the company frequently opens or expands in existing locations to increase vehicle storage capacity to meet customer requirements. At the end of the past month, it has announced the expansion of its Newburg, NY-based storage space. Additional space of 25 acres was added to the already existing 68-acre location.

Copart is focusing on expanding its storage capacity throughout the United States and overseas to meet the growing customer demand. Stronger network aids it to add more cars in inventories and sell those at auctions, thus, driving revenues.

Copart, Inc. Price and Consensus

 

In the last reported quarter (ended on Jan 31, 2019), this online vehicle auctioning company’s adjusted earnings surpassed the Zacks Consensus Estimates while revenues missed the same. In sync with its expansion strategy, it opened 14 facilities, with four in the United States, eight in Germany, and one each at Brazil and Canada in the first six months of fiscal 2019.

Additionally, Copart shared its capacity expansion plans for the United States that will support and provide stand-alone capacity along the East Coast and the Gulf of Mexico. It has 46 expansion projects in the United States, which are either under construction or in the engineering phase that will add capacity to Copart’s network.

Over the past month, shares of Copart have outperformed the industry it belongs to. During that period, shares of the company gained 9.4% compared with the industry’s increase of 4.7%.


Zacks Rank & Other Key Picks

Copart currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader auto sector are Oshkosh Corporation (OSK - Free Report) , CarGurus, Inc. (CARG - Free Report) and Fox Factory Holding Corporation (FOXF - Free Report) , each presently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oshkosh has an expected long-term growth rate of 11.3%. Shares of the company have gained 20.2% in the past three months.

CarGurus has an expected long-term growth rate of 5%. Share price of the company has increased 8.9% in the past three months.

Fox Factory has an expected long-term growth rate of 15.1%. Over the past month, shares of the company have gained 2%.

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