Copart's Rocky Road: Can the Online Auto Auction Giant Regain Its Momentum?
DALLAS — Copart, Inc. (NASDAQ: CPRT), the global leader in online vehicle auctions and remarketing services, finds itself at a crossroads. With a market capitalization of $39.3 billion, the company's digital platforms like BluCar are essential channels for insurers, rental agencies, and dealers to sell vehicles. Yet, its stock has been stuck in low gear.
Over the past 12 months, Copart shares have skidded roughly 30.7%, a stark contrast to the S&P 500's ($SPX) gain of over 14%. The underperformance is even more pronounced against the industrial sector, as tracked by the Industrial Select Sector SPDR Fund (XLI), which has climbed nearly 19% in the same period. While CPRT has managed a modest 3.7% year-to-date gain in 2026, outpacing the SPX, it still trails the sector ETF.
Industry observers point to a dual challenge: a cooling growth trajectory and a softening used-vehicle market. "Auction volumes and pricing have been subdued," notes a sector report, impacting near-term revenue and creating a valuation gap compared to hotter market segments. This has led to dampened investor enthusiasm, despite the company's core business model remaining intact.
Financially, the picture is mixed. For the fiscal year ending July 2026, Wall Street expects diluted earnings per share (EPS) to grow 4.4% to $1.66. Copart has a strong track record of meeting or exceeding estimates, having done so for the last four consecutive quarters—a sign of reliable execution in a tough environment.
The analyst community reflects this nuanced view. The current consensus rating stands at "Moderate Buy," based on 12 covering firms. The breakdown shows five "Strong Buy" recommendations, six "Hold" ratings, and one "Strong Sell." This stance has grown slightly more optimistic since late 2025. However, in December, Barclays analyst John Babcock reaffirmed a "Sell" rating with a $33 price target, citing ongoing market pressures.
The average price target among analysts is $50.89, implying a potential upside of over 25% from current levels. The most bullish call sits at $65, suggesting a rally of more than 60% if the company successfully navigates the current cycle and reignites growth.
Market Voices: A Split Decision
Michael R., Portfolio Manager: "The disconnect between performance and potential is glaring. Copart's digital infrastructure is a long-term asset. This is a cyclical dip, not a structural decline. Patient capital will be rewarded."
Sarah Chen, Auto Industry Analyst: "The data is clear—the used car market is in a correction. Copart's revenues are directly tied to that volume. Until we see stabilization in wholesale prices and inventory turnover, the stock will likely trade sideways. The 'Hold' ratings are prudent."
David "Repo" Miller, Independent Trader (Blogger): "This is a classic value trap. They're talking about 'long-term assets' while the stock charts look like a wrecking yard. A 30% drop isn't a 'dip,' it's a collapse. That Barclays sell target might still be too generous if the economy slows further."
Anita Lopez, Retail Investor: "I'm holding. The dividend isn't huge, but the business is essential. Every fender bender eventually feeds into their auction lanes. The world isn't going to stop having car accidents or retiring fleet vehicles."
Disclosure: The author of this analysis had no positions in the mentioned securities at the time of publication. This content is for informational purposes only and was adapted from source material originally published on Barchart.com.