Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, vehicle-salvage service provider Copart (Nasdaq: CPRT) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Copart's business, and see what CAPS investors are saying about the stock right now.
Copart facts
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Headquarters (Founded)
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Fairfield, Calif. (1982)
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Market Cap
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$3.75 billion
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Industry
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Diversified Commercial Services
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TTM Revenue
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$732.55 million
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Management
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Founder and CEO Willis Johnson
CFO William Franklin
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Return on Equity (avg. last three yrs.)
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15.7%
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Major Competitor
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LKQ (Nasdaq: LKQX)
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CAPS members bullish on CPRT also bullish on
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Apple (Nasdaq: AAPL),
Marvel Entertainment (NYSE: MVL)
Cemex (NYSE: CX)
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CAPS members bearish on CPRT also bearish on
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Honda Motor (NYSE: HMC),
Freddie Mac (NYSE: FRE),
First Solar
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 273 of 280 of the All-Star members who have rated Copart -- some 98% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include FAOFool and hey4ndr3w, both of whom are ranked in the top 10% of our community.
In April, FAOFool reminded our community that Copart provides "a great service to insurance companies, while providing cheaper cars for average people trying to save money on their next car ... just what the current economy is asking for."
An earlier pitch from hey4ndr3w in October 2007 follows that bullish line of thinking, elaborating on the stock's downturn-defending qualities:
Copart strikes me as a great stock to own during a down market, which I believe is where we are headed. I agree with those who foresee a prolonged consumer credit crisis as a result of the subprime mortgage meltdown. People feel less rich when their primary asset-their home-loses value. They will be postponing new car purchases, which bodes well both for direct sales of salvage cars to consumers, and to parts remanufacturers.
What do you think about Copart, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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