Bull’s Eye Report: Copart (CRPT)

Look to non-correlated assets for opportunity

By Dave Moenning, Proprietor of StateoftheMarkets.com


At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

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Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Copart Inc CPRT Diversified Support Services 9.0 +13.00% $34.00

Why We Like The Stock:

It’s difficult to find a compelling buy after a day like yesterday, where many stocks’ technical set-ups were wiped out. However, some stocks that aren’t as correlated to market activity still have a positive set-up going. Copart Inc (NASDAQ:CPRT) is a diversified support services stock that has pulled back from recent highs and looks to be basing right above $34. This stock has been a high-flier for some time now, though the short-term upside to $37 is what should be looked at for a trade. In this extremely sensitive, shaky market, a tight-leash stop at $34 would make sense, as a violation of this level would mean the stock isn’t “basing” anymore, rather “downtrending” in the short-term. So, at current prices, we think CPRT is worth a shot with a goal of around $37 in mind.

We Would Be Buyers:

At the current price (~$34.50).

Company Profile:

Copart, Inc. is a provider of online auctions and vehicle remarketing services in the United States, Canada and the United Kingdom. Copart provides vehicle sellers with a range of services to process and sells vehicles over the Internet through its Virtual Bidding Second Generation (VB2) Internet auction-style sales technology. Vehicle sellers consist primarily of insurance companies, but also include banks and financial institutions, charities, car dealerships, fleet operators and vehicle rental companies. Copart then sells the vehicles to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers and exporters and, at certain locations, to the general public. In August 2012, the company acquired Ride Safely Middle East Auction, LLC. In May 2012, the company acquired Diamond Auto Bids and Disposals. In May 2012, the company acquired two facilities located in Calgary and Edmonton, Canada. As of July 31, 2012, the company had a total of 155 facilities.

Stock Rating: 9.0

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Copart – Last Three Months

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Copart – Last 12 Months

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Copart – Last Five Years

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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

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