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Copart, Inc. (CPRT) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Copart, Inc. (CPRT - Free Report) closed at $43.14, marking a -2% move from the previous day. This move lagged the S&P 500's daily loss of 1.64%. At the same time, the Dow lost 1.08%, and the tech-heavy Nasdaq lost 1.82%.

Prior to today's trading, shares of the company had lost 2.35% over the past month. This has lagged the Business Services sector's gain of 1.38% and the S&P 500's gain of 0.89% in that time.

Copart, Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.32, up 23.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $977.79 million, up 9.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.39 per share and revenue of $4.16 billion, which would represent changes of +10.32% and +7.45%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Copart, Inc.Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.89% higher within the past month. Copart, Inc. is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Copart, Inc. is holding a Forward P/E ratio of 31.74. For comparison, its industry has an average Forward P/E of 31.74, which means Copart, Inc. is trading at a no noticeable deviation to the group.

The Auction and Valuation Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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