/Phone%20and%20computer%20internet%20network.jpg)
Valued at $51.5 billion by market cap, Copart, Inc. (CPRT) operates in the online auction and vehicle remarketing sector. Based in Dallas, Texas, it offers a wide range of services for processing, and selling salvage and clean title vehicles primarily over the internet, catering to various sellers and buyers worldwide.
Shares of Copart have underperformed the broader market over the past 52 weeks. CPRT has gained 23.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27.1%. In 2024, shares of CPRT are up 8.6%, compared to the SPX's 10.4% gains on a YTD basis.
Zooming in further, CPRT’s underperformance becomes more evident when compared to the DWA Industrials Momentum Invesco ETF's (PRN) 45.3% gains over the past 52 weeks.
Copart's underperformance may be due to concerns about its valuation, declining return on equity, and uncertainty related to the impact of emerging technologies like autonomous vehicles on its business model, despite its strong growth and financial health.
On May 16, the company revealed its Q3 earnings results, which narrowly sailed past Wall Street projections. However, this positive outcome failed to woo investors evidenced by its shares dropping slightly amid management's concerns about sliding used vehicle prices and elevated repair costs.
For the current fiscal year, ending in July, analysts expect CPRT's EPS to grow by 14.3% to $1.44. The company's earnings surprise history is mixed. It beat the consensus forecast in three of the past four quarters while missing on one other occasion.
Among the seven analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buy” ratings and three “Holds.”
This configuration is slightly less bullish than three months before, with five analysts suggesting a "Strong Buy."
On May 20, Argus raised its price target for Copart to $64, implying an upside potential of 19.6% from current levels.
The stock is currently trading just 2.4% below the mean price target of $54.80. However, the Street-high price target of $63, assigned by Jefferies on May 17, implies a modest potential upside of 17.7% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
