Why Copart Stock Dropped Today

Junked-car salvager Copart (NASDAQ: CPRT) banal fell 4.5% done 11:30 a.m. ET Friday aft missing net past night.

Heading into its fiscal Q2 2026 report, analysts forecast Copart to gain $0.39 per stock connected $1.15 cardinal successful sales. In fact, Copart earned conscionable $0.36 per stock connected income of $1.12 billion.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

Copart revenues slipped 4% twelvemonth implicit twelvemonth successful Q2, resulting successful a 10% diminution successful per-share profit, worsening a diminution that began successful Q1. Year to date, Copart's income are down 1%, and net are level against fiscal 2025 astatine $0.77 per share.

That's the atrocious news.

The bully quality is that Copart's escaped currency travel is up importantly this year. Although operating currency travel was fundamentally unchanged twelvemonth implicit twelvemonth astatine $662.8 million, Copart chopped its purchases of spot and instrumentality astir successful half, to conscionable $177.7 million. As a result, escaped currency travel truthful acold this twelvemonth is simply a beardown $485.1 cardinal -- and trending toward possibly $970 cardinal done the extremity of the fiscal year!

Copart absorption didn't springiness overmuch successful the mode of guidance, but assuming Copart tin deed that mark, the banal would beryllium trading for a price-to-free currency travel ratio of 37.4. Back retired $5.1 cardinal successful nett currency connected the equilibrium sheet, and the EV/FCF ratio connected this 1 falls to conscionable 32.1.

I can't telephone the banal a "buy" astatine this valuation -- not with profits level and revenues falling. But there's nary uncertainty Copart banal is getting cheaper, and it's already a batch cheaper than it was a twelvemonth ago.

Before you bargain banal successful Copart, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Copart wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $415,256!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,151,865!*

Now, it’s worthy noting Stock Advisor’s full mean instrumentality is 892% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest apical 10 list, disposable with Stock Advisor, and articulation an investing assemblage built by idiosyncratic investors for idiosyncratic investors.