Entering text into the input field will update the search result below

Copart: At Risk Of A Disappointing Quarter

Feb. 13, 2023 12:18 PM ETCopart, Inc. (CPRT)2 Comments
Hunting Alpha profile picture
Hunting Alpha


  • I like Copart, Inc.'s business but currently, I see too many headwinds continuing to affect the stock:
  • Used car market pricing should fall further.
  • Non-retail used car volumes are de-growing faster.
  • There is a risk of continued margin misses.
  • I am keen to hear management's commentary in the upcoming earnings call, as some of the high-frequency data suggests the quarter has not gone as per their expectations.

Desperate woman calling emergency help smartphone.

gahsoon/E+ via Getty Images


I do like the long-term bullish story for Copart, Inc. (NASDAQ:CPRT), which was explained very well by Saguaro Capital. However, I cannot justify a buy currently due to my anticipation of the

This article was written by

Hunting Alpha profile picture
Providing alpha-generating investment ideas.Investment process:1. Sourcing investment ideas based on a combination of top-down, bottom-up and momentum analysis along with an AI/ML model to identify the ones most primed for outperformance vs S&P500. The opportunity set includes almost 2000 and ETFs stocks across major stock markets in the world.2. Evaluating investment ideas by seeing if there is a brief, simple and sensible investment thesis on what can generate alpha vs the market over the next few months and quarters3. Translating narrative into numbers to see if the valuations support the thesisGeneralist approach; investing in any sector so long there is perceived alpha potential. This approach is not for long-term buy and hold investing, although the analysis will be useful even to those investors for timing the portfolio adds and trims. The typical holding period ranges between a few months to a few quarters to even a few weeks in some market conditions. By having a shorter investment holding period, there is the opportunity to maximize IRR of each stock pick, and the overall portfolio.Seeking Alpha Ratings History:It is a good idea to review the ratings history for the articles published by authors. This gives you another indication of how often the author's recommendations work out, which is a proxy for genuine investing and alpha-generating skill.If reviewing Hunting Alpha's rating history, look at how the stock performed in the short to medium time horizon immediately after article publication. The best way to track Hunting Alpha's portfolio holdings and performance is to follow on Twitter (https://twitter.com/SEEACTWIN) and Substack (https://seeactwin.substack.com), where more frequent updates are broadcast to the world.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (2)

You’re going to buy at ath
Copart’s margins have always fluctuated but the long term trend on the operating side is higher. I’m also not concerned about volumes over time. They are taking share and that is unlikely to change. Valuation is the the bigger issue right now.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About CPRT

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on CPRT

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.