Long Trade Idea
Enter your long position between $33.65 (Friday’s intra-day low) and $34.53 (the intra-day high of its last bullish candlestick).
Market Index Analysis
- Copart (NASDAQ:CPRT) is a member of the NASDAQ 100 Index and the S&P 500 Index.
- Both indices push towards fresh all-time highs, climbing a wall of worry driven by weak consumer spending and surging borrowing costs.
- The Bull Bear Power Indicator for the S&P 500 Index is bullish with a negative divergence.
Market Sentiment Analysis
Equity futures are moving higher amid hopes for a peace deal between the US and Iran, but today’s strikes against Iran and claims by US President Trump that Iran will give up all its enriched uranium add to mixed signals and uncertainty. Oil prices tumbled, but price pressures on consumers are expected to remain, as non-energy components have added to inflation. In the meantime, the AI bubble keeps equities pushing higher.
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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 following its post-earnings breakout?
Copart reported revenues of $1.24 billion and earnings per share of $0.43, beating expectations of $1.19 billion and $0.41, respectively, despite macro headwinds. The rising frequency of total-loss events is expanding CPRT’s total addressable market amid a surge in salvage vehicles flowing into its auction system. It has also demonstrated margin resilience, maintains pricing power, and has robust international expansion, adding to a bright outlook.
Metric | Value | Verdict |
P/E Ratio | 21.25 | Bullish |
P/B Ratio | 3.33 | Bearish |
PEG Ratio | 4.11 | Bearish |
Current Ratio | 7.61 | Bullish |
ROIC-WACC Ratio | Positive | Bullish |
Copart Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio of 21.25 makes CPRT an inexpensive stock. By comparison, the P/E ratio for the S&P 500 Index is 32.19.
The average analyst price target for CPRT is $41.22. This suggests good upside potential, while downside risks are decreasing.
Copart Technical Analysis
Today’s CPRT Signal
Copart Price Chart
- The CPRT D1 chart shows price action breaking out above its horizontal support zone.
- It also shows price action attempting to break out above its descending Fibonacci Retracement Fan.
- The Bull Bear Power Indicator turned bullish and is above its ascending trendline.
- The average bullish trading volumes are higher than the average bearish trading volumes.
- CPRT flatlined as the S&P 500 Index advanced, a bearish signal, but bullish catalysts emerged.
My CPRT Long Stock Trade
- CPRT Entry Level: Between $33.65 and $34.53
- CPRT Take Profit: Between $41.79 and $42.95
- CPRT Stop Loss: Between $29.62 and $30.52
- Risk/Reward Ratio: 2.02
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