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Copart, Inc. (CPRT) Laps the Stock Market: Here's Why

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In the latest close session, Copart, Inc. (CPRT - Free Report) was up +2.68% at $48.96. This change outpaced the S&P 500's 1.52% gain on the day. Meanwhile, the Dow gained 1.89%, and the Nasdaq, a tech-heavy index, added 1.88%.

The company's stock has climbed by 3.05% in the past month, exceeding the Business Services sector's loss of 0.57% and the S&P 500's gain of 1.1%.

The investment community will be paying close attention to the earnings performance of Copart, Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.37, reflecting a 12.12% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, up 7.23% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.56 per share and revenue of $4.67 billion, which would represent changes of +11.43% and 0%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Copart, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Copart, Inc. possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Copart, Inc. has a Forward P/E ratio of 27.61 right now. This valuation marks a discount compared to its industry average Forward P/E of 37.7.

The Auction and Valuation Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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