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Dallas, Texas-based Copart, Inc. (CPRT) provides online auctions and vehicle remarketing services. Valued at $55.7 billion by market cap, the company sells vehicles through its virtual bidding platform, insurance companies, financial institutions, vehicle rental companies, and dealers via platforms such as BluCar and CashForCars.com as well as offers services like salvage estimation, processing, transportation, and title management.
Shares of this global online vehicle auction leader have underperformed the broader market over the past year. CPRT has gained 15.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 21.8%. In 2025, CPRT stock is up marginally, compared to SPX’s 2.7% rise on a YTD basis.
Narrowing the focus, CPRT’s underperformance is apparent compared to the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 18.6% over the past year. Moreover, the ETF’s 4% gains on a YTD basis outshines the stock’s marginal returns over the same time frame.
Copart's underperformance can be attributed to the consecutive hurricanes in Florida, posing logistical challenges for Copart, hindering its ability to retrieve vehicles efficiently.
On Nov. 21, CPRT reported its Q1 results, and its shares closed up more than 10% in the following trading session. Its EPS came in at $0.37, up 8.8% from the year-ago quarter. The company’s revenue stood at $1.1 billion, up 12.4% year over year.
For the current fiscal year, ending in July, analysts expect CPRT’s EPS to grow 12.1% to $1.57 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
Among the seven analysts covering CPRT stock, the consensus is a “Moderate Buy.” That’s based on four “Strong Buy” ratings, and three “Holds.”
This configuration is more bullish than three months ago, with three analysts suggesting a “Strong Buy.”
On Nov. 22, 2024, Baird analyst Craig Kennison kept an “Outperform” rating and raised the price target on CPRT to $62, implying a potential upside of 7.2% from current levels.
The mean price target of $64.83 represents a 12% premium to CPRT’s current price levels. The Street-high price target of $70 suggests an upside potential of 21%.
