Stock Analysis | Copart Outlook - A Weak Technical Profile Amid Mixed Analyst Sentiment

Market Snapshot

Takeaway: Copart (CPRT) is currently under pressure from a weak technical outlook and mixed analyst expectations, with the stock down 1.40% in recent trading. The internal diagnostic score for technical analysis is a low 2.6 out of 10, suggesting a bearish trend and increased risk for investors.

News Highlights

Recent headlines include:

• Tomorrow World Launches New Commercial Tower in Dubai – While not directly related to Copart, this development highlights global commercial growth and could indirectly benefit industrial and logistics players, including Copart.
• U.S. Visa Rule Change Affects Tourists and Business Travelers – This could have broader economic implications for global trade and travel, potentially affecting Copart’s international operations and partnerships.
• Quaker Houghton Announces Second Quarter 2025 Results – The company’s update on inflationary pressures and supply chain issues underscores broader economic challenges that could affect Copart’s operating environment.

Analyst Views & Fundamentals

The analyst landscape for Copart is mixed. The simple average rating score is 3.50, while the performance-weighted rating is 1.10, showing a significant disparity between analysts and past performance. This suggests that the market is divided and possibly cautious about the stock’s near-term prospects.

Two analysts have contributed to the recent sentiment: Craig R. Kennison from Baird with a “Buy” rating and Jeff Lick from Stephens & Co. with a “Neutral” rating. Baird’s analyst has a 50.0% historical win rate, while Stephens & Co.’s analyst has a 0.0% win rate, which may make the “Buy” rating more credible.

Here are the key fundamental values and their internal diagnostic scores (0-10):

• Annualized Return on Equity (ROE): 18.94% (Score: 6.5)
• Net Income-to-Revenue Ratio: 1.11% (Score: 6.5)
• Net Profit Margin (NPM): 0.33% (Score: 6.5)
• ROE (Diluted): 9.03% (Score: 6.5)
• Operating Revenue YoY Growth Rate: 13.21% (Score: 6.5)
• Diluted Earnings Per Share YoY Growth Rate: 13.24% (Score: 6.5)

These fundamentals suggest that Copart is showing moderate growth and efficiency, but the weak technical outlook and mixed analyst sentiment may limit upside potential in the short term.

Money-Flow Trends

Copart is seeing mixed money-flow patterns. While small and medium-sized investors are showing some caution (with a negative trend), large and extra-large investors are more optimistic, with a positive trend in inflows. The overall inflow ratio is 50.84%, indicating a slight net positive flow.

Block investors (large institutional investors) are showing a positive trend with a block inflow ratio of 51.73%, which could signal some level of confidence in Copart’s long-term potential despite the current weakness in price and technical indicators.

Key Technical Signals

Copart’s technical indicators are heavily bearish. Here are the key signals and their internal diagnostic scores (0-10):

• Williams %R Oversold: Score 1 – Suggesting strong bearish pressure.
• MACD Death Cross: Score 1 – A major bearish signal.
• RSI Oversold: Score 1 – Another bearish indicator.
• Bearish Engulfing: Score 3.6 – A moderate bearish signal.
• MACD Golden Cross: Score 6.4 – A rare positive signal in a negative environment.

Recent chart patterns include:

• July 17, 2025: Williams %R Oversold, MACD Death Cross, and RSI Oversold signals were all active, reinforcing the bearish momentum.
• July 28, 2025: A Bearish Engulfing pattern was observed, further supporting the downward trend.
• July 21, 2025: A MACD Golden Cross appeared, offering a temporary positive signal amid the bearish trend.

The overall technical trend is weak, with 4 bearish indicators and 0 bullish ones. This imbalance suggests that Copart is likely to remain under pressure in the near term.

Conclusion

Copart is currently facing a challenging environment with weak technical signals, mixed analyst views, and limited short-term upside potential. While the fundamentals show moderate growth and efficiency, the bearish technical profile and mixed sentiment among analysts suggest caution for investors.

Actionable Takeaway: Consider waiting for a clearer reversal signal or a pullback to a more attractive technical level before entering a position in Copart. Monitor the stock closely for any signs of stabilization or improved analyst sentiment.