CPRT Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Copart Inc. (CPRT) is currently not a strong buy for a beginner, long-term investor with $50,000-$100,000 available for investment. While the company's financials show positive growth trends, the technical indicators and recent market performance suggest a bearish trend. Additionally, there are no strong positive catalysts or proprietary trading signals to support an immediate purchase. It is advisable to wait for further clarity after the upcoming earnings report on February 19, 2026.
The technical indicators for CPRT are bearish. The MACD histogram is negative and expanding downward, the RSI is at 17.373 indicating oversold conditions, and the moving averages are in a bearish alignment (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 37.347 and S2 at 36.301, suggesting further downside potential.
The company's financial performance in Q1 2026 showed positive growth, with revenue up 0.72% YoY, net income up 11.50% YoY, and EPS up 10.81% YoY. The gross margin also improved by 4.12%.
The stock has experienced a significant regular market decline of -7.06%, and analysts have mixed views with a lowered price target from Baird and an underweight rating from Barclays. Insurance headwinds and elevated uninsured rates are also noted as challenges. No recent congress trading or influential figure activity has been reported.
In Q1 2026, Copart reported revenue of $1.155 billion, up 0.72% YoY. Net income increased by 11.50% YoY to $403.7 million, and EPS grew by 10.81% YoY to 0.41. The gross margin improved to 46.49%, up 4.12% YoY. These figures indicate solid financial growth despite broader market challenges.
Analysts have mixed opinions. Baird lowered the price target to $52 from $55 but maintained an Outperform rating, while Barclays raised the price target to $33 from $32 but kept an Underweight rating. The sentiment reflects concerns over insurance headwinds and market share evolution.
