$CPRT stock call: Buy, accumulate $24.50 to $28

$CPRT: I'm a buyer at $27.67 and I'd add down to $24.50.

Back at 2022 prices but EPS is up 37%
18x earnings vs a 33x 5-yr avg
Net cash even after a $1.9B deal

I think the volume slump is priced in because pricing holds.

Would you buy Copart here?

Not financial advice

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Bear case: U.S. insurance units fell 7.5% last quarter and 8% for the year as collision claims drop and one big insurer walked over pricing. Q4 EPS fell to $0.35 from $0.41. Buying ACV for $1.9B in a soft car market adds risk. A dip to $24.72 is possible.

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Chart + wave read: I count the drop from the $63.85 May 2025 top as five waves. 1 hit $47.33, 2 bounced to $50.11, 3 hit $32.20 in Mar and 4 bounced to $35.66. Wave 5 keeps making weaker lows: $26.81, $26.74, $25.72. The 2021/2022 lows sit near $25.50. That's my floor.

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The business: Copart sold 4M+ vehicles last year in 11 countries. FY26 revenue was $4.7B at a 35% operating margin. Selling prices rose 5.5% for the year and international revenue grew 11.7% in Q4. It bought back $1.63B of stock and closed ACV on Oct 16 to enter dealer auctions.

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My plan: a starter here and adds between $24.50 and $26. First target is the 200-day near $33, then $34.84 (23.6% retrace of the drop). A weekly close below $23.50 means I'm wrong and I step aside. I'm in no rush. This is a multi-year hold.

Sources: FMP: $CPRT quote, 50/200-day, price history, P/E history, estimates, balance sheet, buybacks (Oct 20, 2026) · Copart Q4 FY2026 release (Sep 10, 2026): revenue $4.7B, Q4 EPS $0.35 vs $0.41, 4M+ units, 11 countries · Copart Q4 FY2026 call: U.S. insurance units -7.5% Q4 and -8% FY, one customer loss, ASPs +5.5%, intl +11.7%, $1.63B buyb · Investing.com: Copart Q4 FY2026 EPS $0.35 vs $0.39 est, insurance volumes and ASPs · Speedwell Research: Copart 4Q26 update, U.S. insurance -7.5%, single customer loss over pricing · Reuters: Copart to buy ACV Auctions in $1.9B all-cash deal, entry into dealer-to-dealer remarketing

Not financial advice. For informational and educational purposes only.