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Why Copart, Inc. (CPRT) Outpaced the Stock Market Today

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Copart, Inc. (CPRT - Free Report) ended the recent trading session at $56.55, demonstrating a +1.45% swing from the preceding day's closing price. This change outpaced the S&P 500's 1.11% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.24%.

Prior to today's trading, shares of the company had gained 0.96% over the past month. This has outpaced the Business Services sector's loss of 1.94% and the S&P 500's gain of 0.48% in that time.

The investment community will be closely monitoring the performance of Copart, Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.38, reflecting a 5.56% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.11 billion, up 8.29% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.42 per share and a revenue of $4.21 billion, signifying shifts of +12.7% and +8.73%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Copart, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.23% upward. Right now, Copart, Inc. possesses a Zacks Rank of #4 (Sell).

In the context of valuation, Copart, Inc. is at present trading with a Forward P/E ratio of 39.16. For comparison, its industry has an average Forward P/E of 39.16, which means Copart, Inc. is trading at no noticeable deviation to the group.

The Auction and Valuation Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 244, positioning it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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