Stock Analysis | Copart Outlook - A Mixed Picture with Fundamentals Strong but Technicals Weak

Market Snapshot

Takeaway: Copart (CPRT) has seen a 4.86% price rise recently, but fundamentals look strong while technicals suggest caution. Investors should weigh the fundamentals against the weak chart signals.

News Highlights

Recent headlines have focused on global issues such as the fuel ethanol market, Gaza aid looting, and Russia's military support to North Korea—none directly impacting Copart. However, global supply chain disruptions and geopolitical risks could indirectly affect logistics and auto parts demand. A notable business development is Accelus securing new growth financing, which signals optimism in the medical tech sector but does not immediately affect Copart's operations.

Analyst Views & Fundamentals

The analyst landscape for Copart is mixed: two analysts have issued ratings in the last 20 days—Buy from Baird’s Craig Kennison (historical win rate: 100.0%) and Neutral from Stephens & Co.’s Jeff Lick (historical win rate: 0.0%). The simple average rating is 3.50, while the performance-weighted score is 2.20, showing a wide dispersion in sentiment.

This mixed analyst consensus contrasts with the stock’s 4.86% price rise recently, indicating a potential mismatch between market expectations and actual performance.

Key Fundamentals

• EV/EBIT: 5.91 – Internal diagnostic score: 3.00
• Profit-MV: 1.39 – Internal diagnostic score: 3.00
• ROA: 4.21% – Internal diagnostic score: 3.00
• Net income-Revenue: 1.11 – Internal diagnostic score: 3.00
• PE: 29.24 – Internal diagnostic score: 1.00
• Basic earnings per share (YoY): 13.04% – Internal diagnostic score: 3.00
• Total profit (YoY): 9.63% – Internal diagnostic score: 3.00
• ROE: 4.64% – Internal diagnostic score: 3.00
• Diluted earnings per share (YoY): 13.24% – Internal diagnostic score: 3.00
• Cash-MV: -35.08 – Internal diagnostic score: 1.00

Overall, Copart’s fundamentals are strong, with positive earnings growth and reasonable EV/EBIT and ROA metrics. However, the high PE and negative cash-to-market value are notable red flags.

Money-Flow Trends

Fund-flow data shows a negative trend across all categories, with block investors also showing outflows. The inflow ratios are:

• Small: 48.99%
• Medium: 48.27%
• Large: 49.41%
• Extra-large: 43.05%
• Overall inflow ratio: 45.07%
• Block inflow ratio: 44.34%

The fund-flow score is 7.43, a “good” rating, but the consistent outflows suggest a cautious stance from institutional investors. While retail and mid-sized funds are showing some interest, big money is withdrawing, signaling mixed signals for the near term.

Key Technical Signals

Technical indicators for Copart are weak. The stock has triggered two recent bearish signals over the past five days:

• 2025-08-20: Shooting Star — Internal diagnostic score: 1.00
• 2025-08-12 to 2025-08-19: Williams %R Overbought — Internal diagnostic score: 1.70

Williams %R Overbought appears frequently in the past seven days, with a 42.25% win rate and an average return of -0.28%. Shooting Star is a rare signal but historically has returned -1.45% and has a 0.0% win rate.

Overall, 2 bearish vs 0 bullish indicators suggest a weak technical outlook. Market activity has been calm, with few signals and limited momentum.

Conclusion

Copart’s strong fundamentals and recent price rise are encouraging, but weak technical signals and mixed analyst ratings suggest caution. While the fund-flow score is good, the negative institutional outflows add a layer of uncertainty.

Actionable Takeaway: Investors should monitor the upcoming earnings report and watch for a potential pullback in price after the technical bearish signals. A rebound in institutional confidence and positive earnings surprises could reverse the current weakness.