Wednesday's IBD 50 Stocks To Watch pick is Copart, which is just above a recent buy point amid a stock market drop. That makes Copart stock one of the best names to watch right now.
The Dallas-based vehicle auctioneer was founded in 1982 with a single salvage yard in California. It now operates more than 270 locations for online vehicle auctions in 11 countries.
Over the last eight quarters, Copart revenue growth has ranged from 7% to 14%. The company posted $1.16 billion in sales in the fiscal second quarter, marking a 14% year-over-year gain.
Bottom-line growth has been accelerating in recent quarters. The firm's earnings dropped 3% during the fiscal fourth-quarter that ended in July. But profits grew 9% and 21% in the past two quarters, according to Investor's Business Daily's MarketSurge. That's a bullish fundamental signal.
Analysts expect an earnings gain of 7% in the fiscal third quarter, with a 13% rise in earnings for the full fiscal year. For the fiscal full year 2026, Wall Street sees another 13% rise in earnings to $1.78 a share, according to MarketSurge.
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Copart Stock Eyes Buy Point
Copart stock continues to rebound from its early April lows. Shares are attempting to break out past a 60.07 buy point in a double bottom-shaped base. The stock rose 0.6% Wednesday morning.
The relative strength line hit a new high Tuesday, per IBD MarketSurge chart analysis, triggering the blue dot on the daily and weekly charts. That's a clear sign of strength in a weak stock market environment.
Remember, the RS line measures a stock's price performance vs. the S&P 500 and is the blue line on every IBD chart. If the market is trending down, good stocks will outperform just by treading water. When the market rebounds, the stocks with best relative strength should bounce back even stronger than the market.
The IBD Stock Checkup shows that Copart stock boasts a IBD Composite Rating of 98 out of a best-possible 99, another bullish attribute. That strong Composite Rating places the name among the best stocks to watch in Wednesday's market.
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Other Stocks To Keep An Eye On
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Newmont | 58.72 | Cup base | |
| Loar Holdings | 96.99 | Cup base | |
| McKesson | 632.59 | Handle entry |
Source: IBD Data as of April 16
Follow Scott Lehtonen on X at @IBD_SLehtonen for more on the best stocks to buy and watch and the Dow Jones Industrial Average.
