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Copart, Inc. (CPRT) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Copart, Inc. (CPRT - Free Report) closed at $43.43, marking a +0.88% move from the previous day. This move outpaced the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.83%.

Coming into today, shares of the company had lost 4.48% in the past month. In that same time, the Business Services sector lost 3.08%, while the S&P 500 lost 2.84%.

Investors will be hoping for strength from Copart, Inc. as it approaches its next earnings release. The company is expected to report EPS of $0.32, up 23.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $977.79 million, up 9.45% from the prior-year quarter.

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.

It is also important to note the recent changes to analyst estimates for Copart, Inc.These recent revisions tend to reflect the evolving nature of short-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.

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 2.89% higher. Copart, Inc. currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Copart, Inc. is currently trading at a Forward P/E ratio of 31.04. For comparison, its industry has an average Forward P/E of 31.04, 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 industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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