Copart Rises 1.76% on $350M Volume as Liquidity Strategy Yields 166.71% Return Despite 345th Rank and 20.3% YTD Underperformance

Copart (CPRT) saw a 1.76% rise on August 5, 2025, with a trading volume of $350 million, ranking 345th in the market. The stock has underperformed broader indices over the past year, falling 20.3% year-to-date compared to the S&P 500’s 7.6% gain. Recent earnings reports highlighted mixed results, with Q3 2025 revenue rising 7.5% to $1.2 billion but missing estimates due to a 2.1% decline in vehicle sales. Analysts remain cautiously optimistic, with a “Moderate Buy” consensus rating from nine analysts, including four “Strong Buy” and five “Hold” calls.

Analyst price targets suggest potential upside, averaging $60.14—a 31.5% premium to current levels—with a high target of $66 implying 44.3% growth. Baird recently lowered its price target to $55 but maintained an “Outperform” rating. Despite a recent 11.5% post-earnings dip, Copart’s EPS growth of 7.7% and service revenue increase of 9.3% signal operational resilience. However, a declining ROCE from 28% to 19% over five years raises questions about long-term efficiency, though rising revenue and asset deployment hint at growth investments.

A liquidity-driven strategy of holding high-volume stocks for one day generated a 166.71% return from 2022 to 2025, outpacing the benchmark by 137.53%. This underscores the short-term potency of volume concentration in capturing market momentum, particularly in volatile environments where liquidity attracts investor interest and amplifies price movements.