Copart Slides After Q2 Miss, Shares Near 52-Week Lows

Copart, Inc. (NASDAQ:CPRT) shares are trading lower Friday after the company reported worse-than-expected second-quarter financial results on Thursday after the market closed.

• Copart shares are approaching critical lows. What’s behind CPRT weakness?

Earnings And Revenue Fall Short; Gross Profit And Net Income Slide

Copart reported earnings per share of 36 cents, missing the consensus estimate of 40 cents. In addition, the company reported revenue of $1.12 billion, missing the consensus estimate of $1.14 billion.

Revenue declined 3.6% year-over-year. Gross profit fell 6.2% to $492.8 million, while net income attributable to Copart decreased 9.5% to $350.7 million.

Technical Weakness Deepens As Shares Hover Near 52-Week Lows

Copart Inc is currently trading 14.2% below its 20-day simple moving average (SMA) and 17% below its 100-day SMA, indicating short-term bearishness amidst a longer-term downtrend. Over the past 12 months, the stock has declined by 35.33%, reflecting sustained selling pressure. Additionally, it is trading near its 52-week low of $36.52, suggesting that the stock is testing critical support levels.

The RSI stands at 38.58, indicating that the stock is neither oversold nor overbought, suggesting a lack of strong buying or selling momentum at this level. Meanwhile, the MACD is currently at -0.6242, below its signal line at -0.3064, which points to increasing bearish momentum and may indicate further declines if the stock does not stabilize.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Copart, highlighting its strengths and weaknesses compared to the broader market:

• Value: Moderate (Score: 55.29/100) — Reflects a fair valuation relative to market peers.
• Quality: Strong (Score: 69.47/100) — Indicates a robust business model and solid financial health.
• Momentum: Weak (Score: 7.73/100) — Stock is underperforming the broader market significantly.

The Verdict: Copart’s Benzinga Edge signal reveals a mixed performance landscape. While the Quality score indicates a strong underlying business, the extremely low Momentum score suggests significant challenges ahead, potentially impacting short-term stock performance.

Copart Shares Edge Lower

CPRT Price Action: At the time of publication, Copart shares are trading 9.99% lower at $33.89, according to data from Benzinga Pro.

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