Copart, Inc. Stock News

Copart's fundamentals remain outstanding, with high profitability, debt-free status, and superior growth prospects despite a recent 17% stock price drop. The market's negative reaction is overblown, driven by accounting changes in international revenue and temporary headwinds, not by core business deterioration. Transition to a higher-margin, scalable service model and rising total loss frequen...

And just like that, the S&P 500 index is nearing all-time highs again.

The Nasdaq-100 market index holds a lot of volatile stocks. Some of its top performers seem overvalued today, while others seem to have room for further growth.

Copart dominates the US salvage auction market, connecting insurers and buyers with unmatched efficiency. More accidents and costly EV repairs boost Copart's business by increasing total-loss vehicles. Natural disasters like Florida storms drive demand, while inflation and uninsured drivers pose risks.

When it comes to short-term trading signals, few indicators are as closely tracked as the Relative Strength Index (RSI). A stock's RSI measures the speed and magnitude of its recent price movements.

One of my favorite -- and possibly simplest -- investing strategies is to "buy the dip" on steady Eddie stocks that have long track records of stomping the market.

Copart is a textbook compounding machine, best left to reinvest cash rather than pay dividends, maximizing long-term shareholder value. The company dominates a duopoly in salvage auctions, leveraging technology and land ownership to create a durable competitive moat. Retained earnings have been reinvested at high returns, turning every $1 into over $7 in market value over the past decade.

Shares of leading online vehicle auction platform Copart (CPRT -11.56%) were down 12% as of noon ET Friday, according to data provided by S&P Global Market Intelligence.