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Copart, Inc. (CPRT) Rises But Trails Market: What Investors Should Know

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Copart, Inc. (CPRT - Free Report) closed the latest trading day at $50.97, indicating a +1.41% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.69%. At the same time, the Dow added 1.04%, and the tech-heavy Nasdaq gained 2.43%.

Coming into today, shares of the company had lost 8.15% in the past month. In that same time, the Business Services sector lost 3.4%, while the S&P 500 lost 4.78%.

The investment community will be paying close attention to the earnings performance of Copart, Inc. in its upcoming release. The company is expected to report EPS of $0.37, up 8.82% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.07 billion, up 7.4% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for Copart, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Copart, Inc. is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Copart, Inc.'s current valuation metrics, including its Forward P/E ratio of 31.28. Its industry sports an average Forward P/E of 31.28, so one might conclude that Copart, Inc. is trading at no noticeable deviation comparatively.

The Auction and Valuation Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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