Stock Analysis | Copart Outlook - Mixed Signals as Technicals Deter Investors

1. Market Snapshot

Takeaway: Copart (CPRT) is showing a recent price rise of 3.06%, but with weak technical signals and mixed analyst ratings, the outlook remains uncertain for the near term.

2. News Highlights

Recent news items may not directly impact Copart but reflect broader market concerns:

• Gaza aid supplies hit by looting – This highlights global instability and could indirectly affect supply chains, which are crucial for asset recovery platforms like Copart.
• US visa policy targeting Chinese students – While not directly related to Copart, this policy could influence broader economic sentiment and trade dynamics in the U.S.
• North Korea's military modernization – Regional tensions could affect global markets and investor risk appetite, which may impact stock valuations in the near term.

3. Analyst Views & Fundamentals

Analyst Ratings: The average rating is 3.50 (simple mean), while the performance-weighted score is 2.20. Analysts are not aligned, with a rating distribution of Buy (1), Neutral (1). This mismatch with the recent price rise of 3.06% suggests caution.

Key Fundamental Factors:

• PE (Price-to-Earnings) ratio: 29.24 – internal diagnostic score: 1 (weak)
• Profit-Margin to Market Value (Profit-MV): 34.17% – internal diagnostic score: 3 (moderate)
• Net Income to Revenue: 111.41% – internal diagnostic score: 3 (moderate)
• Quick Ratio: 779.45% – internal diagnostic score: 3 (moderate)
• Basic EPS (Earnings Per Share) YoY growth: 13.04% – internal diagnostic score: 3 (moderate)
• Diluted EPS YoY growth: 13.24% – internal diagnostic score: 3 (moderate)
• Long-term Debt to Working Capital Ratio: 0.05% – internal diagnostic score: 0 (weak)

The overall fundamental score is 7.97, indicating strong underlying financial health despite weak technical indicators.

4. Money-Flow Trends

Fund flows are generally positive for Copart:

• Overall Inflow Ratio: 51.45%
• Block Inflow Ratio: 51.90%
• Extra-Large Inflow Ratio: 52.77%

While Small and Medium trends are negative, Large and Extra-Large trends are positive, suggesting that institutional and large investors are showing confidence in Copart.

5. Key Technical Signals

Internal diagnostic scores for recent indicators:

• Williams %R (WR Overbought): internal diagnostic score: 1.85 (weak)
• Shooting Star: internal diagnostic score: 4.06 (neutral to positive)

Recent indicators by date:

• 2025-08-28: WR Overbought
• 2025-08-22: WR Overbought
• 2025-08-19: WR Overbought
• 2025-08-18: WR Overbought
• 2025-08-20: Shooting Star

The overall technical trend is weak, with 1 bearish and 0 bullish indicators. Market activity remains low, and the technical score is 2.96. Investors are advised to avoid Copart at this time based on these signals.

6. Conclusion

Copart has strong fundamentals, but the technical signals and mixed analyst ratings create a confusing picture. With an internal diagnostic technical score of 2.96 and a recent price rise that doesn’t align with technical indicators, it’s wise to wait for a pullback or clearer signals before committing capital. Keep an eye on key earnings and analyst updates for more direction in the coming weeks.