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Copart, Inc. (CPRT) Stock Slides as Market Rises: Facts to Know Before You Trade

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Copart, Inc. (CPRT - Free Report) closed the most recent trading day at $44.57, moving -1.15% from the previous trading session. This change lagged the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.

The stock of company has fallen by 6.3% in the past month, lagging the Business Services sector's gain of 0.95% and the S&P 500's gain of 3.94%.

The upcoming earnings release of Copart, Inc. will be of great interest to investors. On that day, Copart, Inc. is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 10.81%. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, up 5.48% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.72 per share and revenue of $4.96 billion. These totals would mark changes of +8.18% and +6.76%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Copart, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.58% lower within the past month. At present, Copart, Inc. boasts a Zacks Rank of #4 (Sell).

Looking at valuation, Copart, Inc. is presently trading at a Forward P/E ratio of 26.27. For comparison, its industry has an average Forward P/E of 34.12, which means Copart, Inc. is trading at a discount to the group.

The Auction and Valuation Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 14% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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