Is Now the Right Moment to Invest in Copart Stock?
Stock Performance: Copart's shares have declined about 30% from their 52-week high in 2025, as investors react to softer trends in the auto market and a reset in expectations, despite a solid earnings report showing revenue and earnings growth.
Market Dynamics: While total loss frequency has increased, indicating potential for more auction units, other factors like declining used-vehicle values and volatile claim counts may pressure growth and seller behavior.
Valuation Concerns: Copart's stock trades at approximately 28 times earnings, which is not considered a bargain given the slowing growth and uncertain industry dynamics, suggesting that investors may want to wait for a better entry point.
Long-Term Outlook: Despite current challenges, Copart's strong business model, land bank, and operational advantages position it well for long-term growth, but investors should be cautious and look for clearer signs of recovery before investing.
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- Earnings Release Schedule: Copart will release its Q2 fiscal 2026 earnings on February 19, 2026, at 4:00 PM ET, reflecting the company's performance in the global online vehicle auction market.
- Conference Call Timing: A conference call will follow at 5:30 PM ET on the same day to discuss the earnings results, which is expected to attract significant attention from investors and analysts, enhancing the company's transparency.
- Live Webcast Availability: The conference call will be webcast live on Copart's investor relations website, ensuring that global investors can access the latest company updates in real-time, thereby improving investor engagement.
- Company Background Information: Founded in 1982, Copart is a global leader in online vehicle auctions, selling over 4 million units last year, showcasing strong market demand and business growth potential.
- Earnings Release Schedule: Copart will announce its Q2 fiscal 2026 earnings on February 19, 2026, at 4:00 PM ET, followed by a conference call at 5:30 PM ET to discuss financial performance and insights.
- Live Conference Call: The conference call will be webcast live on Copart's investor relations website, allowing investors to participate via the 'Listen Here' link, enhancing transparency and engagement with stakeholders.
- Company Overview: Founded in 1982, Copart is a global leader in online vehicle auctions, connecting approximately 1 million members across 185 countries, showcasing its significant influence in the global market.
- Sales Performance Summary: Over the past year, Copart sold more than 4 million vehicles across 250+ locations in 11 countries, demonstrating its extensive reach and strong demand in the vehicle remarketing services sector.
- New Investment Disclosure: According to an SEC filing dated February 10, 2026, Robertson Opportunity Capital disclosed a new stake in MarketAxess (NASDAQ:MKTX) by purchasing 28,830 shares valued at approximately $5.23 million, indicating confidence in the company.
- Asset Allocation Change: This acquisition represents 1.9% of Robertson's 13F reportable assets, highlighting MarketAxess's significance in the portfolio and potentially influencing future investment decisions.
- Market Performance Analysis: As of February 9, 2026, MarketAxess shares were priced at $171.23, down 13.7% over the past year and underperforming the S&P 500 by 28 percentage points, reflecting market caution regarding its future growth.
- Growth Potential Assessment: Despite total sales only inching up 4% in 2025, MarketAxess saw average daily volumes in block trading, portfolio trading, and dealer-initiated trading increase by 29%, 41%, and 32% respectively, indicating significant growth opportunities in the largely untapped bond trading market.
- Price Target Adjustment: The latest revision of Copart's price target reflects a reassessment of the company's outlook based on current information, prompting investors to reevaluate their investment decisions without relying on assumed trends.
- Market Reaction: This change in target price may provoke differing opinions among investors regarding Copart's stock, especially as the gap between the current share price and the new target may highlight varying expectations on margins, volumes, or capital allocation.
- Analyst Perspectives: Different analysts may apply various methods to assess Copart's fair value, meaning a single target price typically falls within a broader range of fair value views, necessitating investors to revisit their assumptions when targets shift.
- Community Engagement: The Simply Wall St community provides a platform for investors to connect company narratives with expectations for revenue, earnings, and margins, thereby enhancing their understanding of Copart's market performance and fair value.
- Stake Reduction: Quantum Capital Management reduced its stake in Landstar System by 61,397 shares in Q3 2025, resulting in an estimated value decrease of approximately $12.83 million, indicating a cautious outlook on the company's future performance.
- Ownership Proportion Shift: Following this reduction, Landstar now represents only 4% of Quantum's reportable AUM, reflecting a diminished relative importance in the investment portfolio that may affect market focus on the company.
- Market Performance: As of November 12, 2025, Landstar shares were priced at $130.43, down 29.9% year-over-year and underperforming the S&P 500 by 45 percentage points, highlighting significant market pressures faced by the company.
- Shareholder Returns: Despite these challenges, Landstar plans to pay a special dividend of $2 per share on January 21, 2026, demonstrating management's confidence in the company's cash flow and commitment to returning value to shareholders.
Put Contract Overview: The $37.50 put contract for CPRT has a bid of $2.25, allowing investors to buy shares at a lower cost basis of $35.25, which is attractive compared to the current price of $39.04. There is a 65% chance the contract may expire worthless, potentially yielding a 6.00% return on cash commitment.
Call Contract Overview: The $42.50 call contract has a bid of $2.50, offering a potential total return of 15.27% if the stock is called away at expiration. There is a 55% chance this contract may also expire worthless, allowing investors to keep both the shares and the premium, resulting in a 6.40% additional return.
Volatility Insights: The implied volatility for both the put and call contracts is around 30%, while the actual trailing twelve-month volatility is calculated at 24%, indicating a difference in market expectations versus historical performance.
YieldBoost Concept: The article discusses the concept of YieldBoost, highlighting the potential returns from both the put and call contracts, which can enhance overall investment returns for CPRT stockholders.









