Stock Analysis | Copart Outlook - Technical Weakness and Mixed Analyst Views

Market Snapshot

Copart (CPRT.O) is showing a current price rise of 1.99%, but internal diagnostic scores reveal a weak technical outlook and mixed analyst ratings, with a recent 5-day average return of -0.22% from bearish signals. Investors are advised to proceed with caution.

News Highlights

Recent news has mostly centered around global issues rather than company-specific events:

• Fuel Ethanol Market Report: A new report on the fuel ethanol market suggests growing opportunities by 2034, which may indirectly benefit industries reliant on energy but has no direct impact on Copart.
• UN Condemns Medical Supply Looting in Gaza: This humanitarian issue highlights global instability but is unlikely to affect Copart's operations or stock price.
• Russia Boosts Oil Supplies to Syria: Energy market shifts are noted, but no immediate impact on Copart is expected.

Analyst Views & Fundamentals

Analysts are divided, with one firm rating the stock as underperform and another as buy. The simple average rating is 3.50, while the performance-weighted score is 2.20, showing a clear divergence in expectations. This contrasts with the current price rising trend, suggesting market uncertainty.

Fundamental Highlights

Key fundamental factors for Copart include:

• Net profit margin: 32.37% (internal diagnostic score: 7.15)
• Return on assets (ROA): 4.21% (internal diagnostic score: 7.15)
• Basic EPS YoY growth: 13.04% (internal diagnostic score: 7.15)
• PE ratio: 29.24 (internal diagnostic score: 7.15)
• Operating revenue YoY growth: 13.21% (internal diagnostic score: 7.15)

These metrics suggest strong fundamentals, but they must be weighed against the weak technical outlook.

Money-Flow Trends

Fund-flow data indicates that large and extra-large investors are showing a positive trend, with inflow ratios at 49.20% and 52.0% respectively, compared to the overall inflow ratio of 50.8%. However, small investors are seeing a negative trend at 48.3%. This suggests institutional confidence, but retail sentiment is cautious.

Key Technical Signals

Technical indicators for Copart are largely bearish:

• Williams %R (WR) Overbought: Internal diagnostic score of 1.97 suggests caution, with historical average return of -0.22%.
• Marubozu White: A bearish candlestick pattern with an internal diagnostic score of 1.38.
• WR Oversold: Strongly bearish with an internal diagnostic score of 1.00 and a historical win rate of 35.62%.
• Bearish Engulfing: Another bearish pattern, though with a slightly higher internal diagnostic score of 3.64.

Recent indicators by date include WR Overbought (2025-08-06), Bearish Engulfing (2025-07-28), Marubozu White (2025-08-05), and WR Oversold (2025-07-31). The bearish signals are clearly dominant, with no bullish indicators in the past 5 days.

Conclusion

Given the weak technical outlook with an internal diagnostic score of 2.0, mixed analyst views, and bearish candlestick patterns, investors are advised to consider waiting for a pull-back before entering or adding to a position in Copart. The current momentum and trend quality are not favorable for short-term trading.