Stock Analysis | Copart Outlook - Bearish Signal Amid Mixed Analyst Views

Market Snapshot

Copart (CPRT) is facing bearish momentum with a weak technical score of 2.9 and mixed analyst ratings. Investors should remain cautious as the stock's fundamentals are moderate but not compelling enough to support strong technical signals.

News Highlights

Recent news impacting the broader market includes:

• Fuel Ethanol Market Report Released: The report highlights advancements in ethanol-to-sustainable aviation fuel (SAF) technology, which may have indirect implications for logistics and transportation sectors.
• UN Condemns Looting in Gaza: Armed groups have been looting humanitarian aid, worsening the situation in the region. This could impact global aid supply chains and humanitarian efforts.
• Russia Boosts Oil Supplies to Syria: Increased oil shipments may affect regional and global energy markets, though the direct impact on Copart appears limited.

Analyst Views & Fundamentals

Analysts remain divided, with an average rating score of 3.50 and a weighted performance rating of 2.20. The simple average and weighted ratings do not align well with the recent 1.07% price rise, indicating a mismatch between market expectations and the stock's performance.

Key fundamental values and their internal diagnostic scores (0-10):

• Total Operating Revenue (YoY Growth Rate): 13.21% (Score: 1) — Growth is low and scored weakly.
• Net Income to Revenue: 1.12% (Score: 3) — Margins are thin, with moderate potential.
• Return on Assets (ROA): 4.21% (Score: 4) — A decent efficiency indicator.
• Return on Equity (ROE): 4.64% (Score: 3) — Suggests moderate profitability.
• Diluted Earnings per Share (YoY Growth Rate): 13.24% (Score: 3) — Earnings growth is positive but not extraordinary.

Money-Flow Trends

Copart's fund-flow score is 7.7, indicating positive overall money movement. Large investors and institutions are contributing to the inflow, with block inflow ratio at 51.24%, suggesting strong institutional support.

However, medium and small investors are showing a negative trend, with medium inflow at 49.24% and small inflow at 49.63%. This contrast indicates a mixed sentiment between big money and retail investors.

Key Technical Signals

The technical outlook for Copart is weak, with an internal diagnostic score of 2.9, suggesting it's best to avoid the stock for now. Key indicators include:

• Williams %R (WR) Overbought (Score: 1.75): The indicator has been frequently triggered over the past 5 days, indicating a neutral to bearish bias.
• Shooting Star (Score: 4.06): A rare signal with a 50% win rate, suggesting a neutral rise in price.

Recent indicators include multiple WR Overbought signals from August 19 to 29, 2025, highlighting an overbought condition. Momentum appears weak, with bearish signals dominating and very few positive signs.

Conclusion

Consider waiting for a pull-back before entering a position in Copart. While the fundamental factors show moderate growth and profitability, the technical signals are weak and bearish. The mismatch between analyst ratings and price action further complicates the outlook. Investors should monitor earnings and any new developments in the logistics or e-commerce sectors for additional signals.