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Dallas, Texas-based Copart, Inc. (CPRT) provides online auctions and vehicle remarketing services in the United States and globally. With a market cap of $51 billion, the company offers a range of services for processing and selling vehicles over the Internet auction-style sales technology to companies, sellers, and individuals.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and CPRT fits right into that category with its market cap exceeding this threshold, showcasing its dominance in the online vehicle auction space. Copart benefits from a large portfolio of online services including online seller access, salvage estimation, transportation, and vehicle inspection stations, which have solidified its leading position as an online vehicle auction and remarketing platform.
However, CPRT stock has fallen almost 18% from its all-time high of $64.38, recorded on Nov. 27, 2024. Shares of Copart have declined 14.1% over the past three months, falling behind the Industrial Select Sector SPDR Fund's (XLI) 4.9% fall during the same time frame.
Over the past six months, CPRT shares surged 6.7%, outperforming XLI’s 3.2% gain. However, over the past 52 weeks, CPRT stock declined 3.9%, significantly underperforming XLI's 8.1% gains during the same time frame.
To confirm the recent downturn, Copart stock has been trading mostly below its 200-day and 50-day moving averages over the recent months.
Despite delivering impressive results in its recent Q2 earnings release, CPRT declined 2.8% on Feb. 21. The company reported a robust 14% increase in its revenue to approximately $1.2 billion. Moreover, its EPS came in at $0.40, exceeding the Wall Street estimates by 5.3%. Additionally, CPRT’s gross profit and net income grew 13.2% and 19% from the prior year’s quarter to $525.6 million and $387.4 million, respectively.
However, higher spending on operating expenses which increased at 15.1% year-over-year to $737.1 million, led to operating margin contraction and a slower 12.2%% growth in operating income to $426.2 million, which could have unsettled investors.
Meanwhile, CPRT’s peer, Liquidity Services, Inc. (LQDT), is in the lead, surging 31.6% over the past six months and 66% over the past 52 weeks.
Among the seven analysts covering the CPRT stock, the consensus rating is a “Moderate Buy.” Its mean target of $65 suggests a 23.1% upside potential from the current market prices.
