Copart, Inc. (CPRT)

Copart stock forecast: buy or sell

Copart stock outlook

  • Copart closed today at $83.55 after skyrocketing a 2.52% breaking a streak of 3 sessions in green.
  • Copart, Inc. provides online auctions and vehicle remarketing services.
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Important note:
The opinions written in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not have an understanding of the individual circumstances of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are provided for general educational purposes only

Copart stock chart overview

Should I buy Copart stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is CPRT stock a buy?

In the current situation of Copart there is not any eligible buy setup. This doesn't mean we expect a selloff for CPRT in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Copart stock?

"To sell or not to sell", if you are holding Copart shares?. In the same way as when we have to buy shares, choosing when is the best time to sell is not a fickle decision, and we must adhere our own trading strategy. Our trading system selects very simple strategies to guide us on when is the best time to sell a stock. Be aware that these strategies are not intended for selling short Copart stock

As a rule of thumb, you should not mantain an investment that yields greater losses than those expected by the time of purchase. When to sell shares must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Copart stock?

In the current situation of Copart there is not any eligible sell setup, so Copart stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Copart stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, just one rating was published for Copart

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Copart ratings

Brokerage firmRating
Jun 19th, 2020
JPMorgan Chase & Co. Neutral

Technical analysis

SMAs overview

A favorite tool of many traders are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Technical analysts use support and resistance levels to spot price points in the stock price action that may behave as glass ceiling, preventing the price of shares to move in certain direction. A support level is a level where the price tends to stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until finding another support level. On the other hand, a resistance level is where the price tends to find opposition as it rises. In the same manner, this means that the price is more liable to "rebound" at this level, and if it finally breaches this level, the price will rally easily until it finds the next resistance

The current resistance levels are:

  • R1: $83.70 (0.18% above)
  • R2: $85.31 (2.11% above)
  • R3: $86.61 (3.66% above)
  • The current supports are:

  • S1: $80.71 (-3.4% below)
  • S2: $79.74 (-4.56% below)
  • S3: $78.55 (-5.98% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. It is made up of 3 lines that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to map the current and past weakness or strength of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI fluctuates from 0% to 100%. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by stock traders

    When the Relative Strength Indicator (RSI) stays for so long below 70 and above 30, without showing moments of overbought and oversold, the indicator loses its usefulness, and we are now in one of these situations.

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    Earnings and financials

    In mid-May, Copart had the quarterly investors event and posted the second-quarter report. Copart underperformed market estimates and presented an earnings per share (EPS) of $0.58, that is a -7.94% worse than the initial estimates of $0.63. Reported revenues were $550.4 million compared to estimates of $547.1 million.

    Compared to the same quarter last year, EPS was $0.66, so reported EPS means a decrease of -12.12%. Looking at sales, figures scarcely changed compared to $553.1M same quarter a year ago.

    Copart will host the quarterly earnings call next September. Forecasted EPS for this quarter is $0.38. If you own or you are planning to buy Copart stock, you must be on alert as the earnings reporting day usually has a higher than usual volatility, and price can gap up or down with unsually low liquidity and not respecting your buy/stop-loss orders. You can probably obtain more details about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.copart.com.

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