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Copart, Inc. (CPRT)

Copart stock forecast: buy or sell

Close on Oct 23rd, 2020
$114.29 +0.18%
3 months performance
24.90%
Published: October 24th, 2020 - 4.36pm EDT

Copart stock outlook

  • Copart closed yesterday at $114.29 after merely moving a 0.18% breaking a streak of 5 sessions in red.
  • From the chart point view, price is drawing a scaled uptrend since last March with higher tops and higher bottoms. This uptrend marked a 105.23% gain
  • JPMorgan Chase & Co. posted a neutral rating for Copart on Thursday, with a target of $101.00

Important:
The thoughts expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this article does not know the particular conditions 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 Thoughts are posted for educative purposes only

Copart stock charts

Should I buy Copart stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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?

Currently, Copart stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $CPRT in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

Should I sell Copart stock?

Do you know when is it time to sell Copart stock?. Trading strategies prevent us from making impulsive decisions based on our personal moods or the noise that surrounds the market. When selling, as well as buying, our setups are very simple to follow and are only applicable for selling stocks you already own, not for selling short Copart stock

As a rule of thumb, you should never keep a trade that yields higher than expected losses upon purchase. The timing to sell your stock must always be determined by the stop-loss (automatic or manual)

Is it time to sell Copart stock?

Currently, Copart stock doesn't match any of our preferred sell setups, so if you own Copart stock and your operation is in profit probably is not time to sell now

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 month, just one brokerage rating was published for Copart

Copart ratings

Brokerage firmRating
Oct 22nd, 2020
JPMorgan Chase & Co. Neutral

Technical analysis

Copart shares started an uptrend last March, and gained an amazing 105.23%. The price action shows higher peaks and higher lows, and along the way gave some buying opportunities for those who wanted to invest. Latest pullback was in mid-September, when price bounced at $100.07. Currently, it swings in a consolidation between its last top ($118.56) and its last bottom ($100.07)

SMAs overview

A favorite tool of many traders are the moving averages, that easily show trend direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

CPRT SMAs chart

Supports and resistances

Market investors use supports and resistances as a way to identify price points on a chart that may work as glass ceiling, preventing the price of an asset to move in certain direction. A support level is a level where the price tends to find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until approaching another support level. In contrast, resistances are where the price may find opposition as it moves up. Again, this means that the price is more likely to "bounce off" at this level, and if it finally crosses this level, the price will climb easily until it approaches the next resistance

The current resistance levels are:

  • R1: $118.56 (3.74% above)
  • The current support levels are:

  • S1: $110.00 (-3.75% below)
  • S2: $104.88 (-8.23% below)
  • S3: $100.07 (-12.44% below)
  • Bollinger bands

    So-called Bollinger bands are a widely known studio developed by John Bollinger. The Bollinger Bands are bands that fluctuate around a moving averagediffering in distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on October 13, the price has corrected downwards by 3%

    CPRT RSI chart

    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 previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on Monday after just crossing to the overbough zone for a single day (weak signal). The RSI reading yesterday was 62. Copart price went down a 2.47% since RSI lost the overbought zone

    CPRT RSI chart

    Earnings and financials

    Copart ($CPRT) hosted the quarterly financial event and posted the fiscal 4th-quarter report in early September. Copart beat consensus earnings estimates and posted a per-share earnings of $0.69, that is a 81.58% increase compared to the previous forecasts of $0.38.

    For comparison, the EPS for the same quarter last year was $0.60, so reported EPS means a improvement of 15%.

    Copart ($CPRT) will host the earnings call on mid next November. Forecasted earnings per-share for this quarter is $0.70, compared to $0.69 that was reported for Q4.

    CPRT revenues and profits chart