Long Trade Idea
Enter your long position between $33.53 (the lower band of its horizontal support zone) and $34.73 (the upper band of its horizontal support zone).
Market Index Analysis
Copart (CPRT) is a member of the NASDAQ 100 Index and S&P 500 Index.
Both indices descend inside bearish price channels with rising bearish trading volumes.
The Bull Bear Power Indicator for the S&P 500 Index is bearish with a descending trendline.
Market Sentiment Analysis
Equity futures are, but volatility could reverse early gains after equity markets reached 2026 lows, and oil prices remain elevated, trading near $100 per barrel. The US attacked Kharg Island, Iran’s economic crown jewel that accounts for over 90% of its oil-related activities, while President Trump may delay his trip to China, as he hopes to pressure China into helping with securing the Strait of Hormuz. Investors also eagerly await NVIDIA’s annual GTC conference, while the Fed will hold its second policy meeting of 2026.
Copart Fundamental Analysis
Copart is an online auction platform for the automobile sector. It holds weekly and bi-weekly auctions for consumers and automotive companies. It is active in eleven countries, enabling buyers to purchase clean-title vehicles through its patented virtual auction technology (VB3).
So, why am I bullish on CPRT despite its nearly 20% correction?
I view the recent correction as a buying opportunity, as I remain bullish due to strategic growth initiatives, enhanced financial flexibility following the $1.25 billion unsecured senior revolving credit facility, and operational efficiency. Copart benefits from a capital-light, fee-driven marketplace model, and continued investments in yard expansion, digital bidding infrastructure, and cross-border logistics. I am equally bullish on its pricing power and rising auction returns.
Metric | Value | Verdict |
P/E Ratio | 21.44 | Bullish |
P/B Ratio | 3.35 | Bearish |
PEG Ratio | 4.49 | Bearish |
Current Ratio | 10.06 | Bullish |
ROIC-WACC Ratio | Positive | Bullish |
Copart Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio of 21.44 makes CPRT an inexpensive stock. By comparison, the P/E ratio for the S&P 500 is 26.59.
The average analyst price target for CPRT is $42.67. This suggests good upside potential with manageable downside risks.
Copart Technical Analysis
Today’s CPRT Signal
Copart Price Chart
The CPRT D1 chart shows price action inside a horizontal support zone.
It also shows price action between its descending 0.0% and 38.2% Fibonacci Retracement Fan levels.
The Bull Bear Power Indicator is bearish with a positive divergence.
The average bullish trading volumes are higher than the average bearish trading volumes.
CPRT corrected with the S&P 500 Index, but bearish signal, but breakout catalysts are rising.
My CPRT Long Stock Trade
CPRT Entry Level: Between $33.53 and $34.73
CPRT Take Profit: Between $42.67 and $43.95
CPRT Stop Loss: Between $29.28 and $30.25
Risk/Reward Ratio: 2.15
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