Copart: Trash or Treasure?

| About: Copart, Inc. (CPRT)

While I was screening on Barchart for stocks having great growth potential and also have current price momentum I can across Copart (NASDAQ:CPRT) a company that acts as an agent to dispose of cars and other vehicles. Since they mostly act as an agent, they aren't a capital intensive company. The price momentum is what got my attention.

Copart, Inc. (CPRT) provides vehicle suppliers, primarily insurance companies, with a full range of services to process and sell salvage vehicles through auctions, principally to licensed dismantlers, rebuilders and used vehicle dealers. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made.
Factors to Consider:
Technical Factors:
  • 96% Barchart technical buy signal
  • Trend Spotter buy signal
  • Trading above its 20, 50 and 100 day moving average
  • 7 new highs and up 3.29% in the last month
  • Relative Strength Index 69.58% and rising
  • Trading around 45.46 with a 50 day moving average of 42.73
Fundamental Factors:
  • Wall Street brokerage analysts have issued 4 strong buy, 3 buy and 3 hold recommendations for their clients
  • Sales are projected to increase by 12.30% this year and another 3.70% next year
  • Earnings are forecasted to increase by 21.10% this year, 18.30% next year and 14.32% annually for the next 5 years
General Investor Sentiment:
  • On Motley Fool over 1,970 readers have an opinion on this stock
  • CAPS members vote 1,382 to 37 that the stock will beat the market
  • The more experienced All Stars agree with a 543 to 8 vote
Summary: The company is widely and positively followed by both professional and individual investors because of a consensus of growth in both sales and earnings. Green companies are in so a capital intensive recycler should be on your watch lists.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.