Copart, Inc. Struggles to Keep Pace with Market Growth
Copart, Inc. (CPRT) based in Dallas, Texas, specializes in online auctions and vehicle remarketing services. With a market cap of $55.7 billion, the company offers a virtual bidding platform to sell vehicles from insurance firms, financial institutions, vehicle rental services, and dealers. They also provide services like salvage estimation, processing, transportation, and title management through platforms including BluCar and CashForCars.com.
Over the past year, Copart’s performance has not matched that of the broader market. While CPRT shares increased by 15.7%, the S&P 500 Index ($SPX) saw a significant rise of 21.8%. In 2025, CPRT has seen only a nominal gain, whereas the SPX has climbed by 2.7% year-to-date.
Comparison with Industrial Sector
Looking at a narrower scope, CPRT’s performance pales in comparison to the Industrial Select Sector SPDR Fund (XLI), which surged approximately 18.6% in the last year. Moreover, XLI’s year-to-date increase of 4% demonstrates a stronger return than CPRT’s slight gains during the same period.
Logistical Challenges Impact Performance
One of the main reasons for Copart’s limited growth is the impact of consecutive hurricanes in Florida. These weather events have created logistical hurdles, which have hindered the company’s efficiency in retrieving vehicles.
Recent Earnings Report Shows Positive Signs
On November 21, CPRT released its Q1 earnings report, leading to a jump of over 10% in share price during the following trading session. The earnings per share (EPS) climbed to $0.37, showing an 8.8% increase compared to the same quarter last year. Revenue reached $1.1 billion, up 12.4% year-over-year.
Analysts Anticipate Future Growth
For the current fiscal year ending in July, analysts forecast a 12.1% increase in CPRT’s EPS to $1.57 on a diluted basis. The company’s history with earnings surprises is mixed, having met or exceeded analysts’ expectations in only two of the last four quarters while falling short in the other two.
Analyst Ratings Reflect Optimism
Consensus among seven analysts covering CPRT stock suggests a “Moderate Buy,” supported by four “Strong Buy” ratings and three “Holds.” This outlook has improved significantly over the past three months, with more analysts now recommending a “Strong Buy.”
Price Target Adjustments Indicate Upward Potential
On November 22, 2024, Baird analyst Craig Kennison maintained an “Outperform” rating on CPRT, raising the price target to $62, indicating a potential 7.2% upside from its current price. The average target price sits at $64.83, suggesting a 12% premium, while the highest target of $70 indicates a possible 21% increase.
On the date of publication, Neha Panjwani held no positions in the securities mentioned. The information provided in this article is for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
