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Copart (CPRT) to Gain From Acquisitions, Location Expansion

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On Mar 13, we issued an updated research report on Copart, Inc. (CPRT - Free Report) .

Copart anticipates that strategic acquisitions and the opening of facilities will strengthen its position in the market. In March 2018, with an aim to expand its presence in the Nordic region, it acquired AVK, a leading Finland-based salvage auto auction company. Earlier in June 2017, it acquired a pre-owned powersports vehicle auctioning company, known as National Powersport Auctions (NPA), which will expand its presence in Atlanta, Cincinnati, Dallas, Philadelphia and San Diego areas.

Also, expansion of network facilities will help the company to manage its inflating volumes. During the second-quarter fiscal of 2018, it expanded in Phoenix, AR and Greenwell Springs, LA. Additionally, it bought a new site in San Antonio, TX to expand its existing location in the city.

Copart, Inc. Price and Consensus

 

On Feb 26, Copart reported adjusted earnings per share of 47 cents for second-quarter fiscal 2018 (ended Jan 31, 2018), beating the Zacks Consensus Estimate of 38 cents. Quarterly revenues rose 31.3% year over year to $459.1 million. The top line also surpassed the Zacks Consensus Estimate.

Moreover, the stock has seen the Zacks Consensus Estimate for quarterly earnings being revised 11.6% upward over the last 30 days and has a long-term growth rate of 20.1%.

Price Performance

In the last six months, shares of Copart outperformed the industry it belongs to. During the period, the company’s stock skyrocketed 56.2% in comparison with the industry’s gain of 36.5%.

 

 

Zacks Rank & Other Key Picks

Copart sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the auto space are General Motors Company (GM - Free Report) , Honda Motor Co. Ltd. (HMC - Free Report) and BMW AG (BAMXF - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

General Motors has an expected long-term growth rate of 8.4%. In the last six months, shares of the company have declined 2.2%.

Honda has an expected long-term growth rate of 5.2%. Shares of the company have gained 18% in the last six months.

BMW has an expected long-term growth rate of 4.2%. In the last three months, shares of the company have gained 3.8%.

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