Copart is the IBD Stock Of The Day as it finds support at a key level.
Near a two-decade high after strong gains in 2023, Copart stock is also working on a new buy point as investors hope for AI-powered earnings growth.
Copart Stock Performance
Shares of the vehicle auction specialist fell 2.5% to 49.23 on the stock market today. But Copart stock rebounded from a 50-day line test soon after the open, coming back to its 21-day moving average.
The CPRT stock chart shows a 51.53 buy point from a 13-week flat base, according to MarketSmith pattern recognition. Investors could use 51.27 as a slightly early entry.
The relative strength line for Copart stock has weakened and is well off the consolidation high. However, the RS line, the blue line in the chart provided, rallied strongly for most of 2023. A rising RS line means a stock is outperforming the S&P 500 index.
In the past 52 weeks, Copart stock surged around 44%. In fact, CPRT stock is on the IBD Long-Term Leaders list, thanks in part to a history of consistent profit growth and share price outperformance
Copart Earnings Report
On Nov. 16, Copart posted earnings of 34 cents per share for its fiscal first quarter, spiking 31% year-over-year. That was the best gain in years.
Sales accelerated for a second straight quarter to $1.02 billion, FactSet shows.
Copart stock surged in November on earnings, then pulled back to form its current flat-base pattern.
For the fiscal year 2024, which ends in July, analysts expect Copart earnings per share to grow 16.7% vs. 2023. Sales are seen rising 9.8% for the year.
Though solid, growth is slowing. The IBD Stock Checkup tool shows a three-year earnings growth rate of 23% and three-year sales growth rate of 22%, well above Wall Street's expectations for fiscal 2024.
Bringing AI To Auctions
Notably, Copart last year announced an AI (artificial intelligence) pact to support auto insurers.
The collaboration is with Hi Marley — the first intelligent conversational platform built for property and casualty insurance.
Copart aims to use AI to drive faster and more accurate total loss decision.
The Dallas-based company was founded in 1982 with a single salvage yard in California. It now operates more than 250 locations for online vehicle auctions in 11 countries.
