Company Performance - Copart, Inc. closed at $40.37, down 2.82% from the previous trading session, underperforming the S&P 500's gain of 0.41% [1] - Prior to this trading day, Copart's shares had increased by 5.19%, outperforming the Business Services sector's decline of 4.89% and the S&P 500's gain of 0.38% [1] Upcoming Earnings - Copart, Inc. is expected to report earnings of $0.39 per share, reflecting a year-over-year decline of 2.5% [2] - The Zacks Consensus Estimate for revenue is projected at $1.17 billion, which is an increase of 0.41% compared to the same period last year [2] Full Year Estimates - For the full year, analysts expect earnings of $1.64 per share and revenue of $4.71 billion, representing changes of +3.14% and +1.31% respectively from the previous year [3] - Recent changes to analyst estimates for Copart may indicate shifts in near-term business trends, with positive revisions seen as a favorable sign for the business outlook [3] Valuation Metrics - Copart, Inc. has a Forward P/E ratio of 25.33, which aligns with the industry average [6] - The Auction and Valuation Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 99, placing it in the top 41% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 rated stocks averaging an annual return of +25% since 1988 [5] - Currently, Copart, Inc. holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the last 30 days [5]

Core Viewpoint - Copart (CPRT) is positioned as a structurally advantaged toll-taker in an industry benefiting from permanent tailwinds, despite current market concerns regarding short-term administrative cost increases and capital expenditures [1] Company Summary - Copart operates in an industry characterized by consistent demand and structural advantages, allowing it to capitalize on long-term growth opportunities [1] Industry Summary - The industry in which Copart operates is experiencing permanent tailwinds, suggesting a favorable environment for growth and profitability [1]

Core Insights - Copart (CPRT) is positioned as a structurally advantaged toll-taker in an industry benefiting from permanent tailwinds [1] Industry Overview - The market is currently focused on short-term administrative cost increases and capital expenditures [1]

Company Overview - Copart, Inc. is a Texas-based multinational leader in online vehicle auctions and remarketing services, with a market cap of $39.7 billion [1] - The company operates a proprietary, technology-driven platform connecting sellers, primarily insurance companies and fleet operators, with a global base of buyers including dismantlers and used-vehicle dealers [1] Earnings Expectations - Analysts expect Copart to report a profit of $0.39 per share for fiscal Q2 2026, a decrease of 2.5% from $0.40 per share in the same quarter last year [2] - For fiscal 2026, the expected profit is $1.64 per share, reflecting a 3.1% increase from $1.59 per share in fiscal 2025, with further growth anticipated to $1.81 per share in fiscal 2027, a year-over-year increase of 10.4% [3] Stock Performance - Over the past 52 weeks, Copart's stock has declined by 27.2%, underperforming the S&P 500 Index's return of 16.9% and the Industrial Select Sector SPDR Fund's increase of 21.9% [4] - The decline is attributed to a cooling growth momentum and softer conditions in parts of the used-vehicle market, which have negatively impacted near-term revenue and earnings trends [5] Analyst Ratings - Wall Street analysts maintain a "Moderate Buy" rating for Copart, with five analysts recommending "Strong Buy," six suggesting "Hold," and one advising "Strong Sell" [6] - The mean price target for Copart is set at $52.30, indicating a potential upside of 27.4% from current levels [6]

Company Overview - Copart, Inc. (NASDAQ:CPRT) operates an online vehicle auction and remarketing platform, primarily serving insurance companies, banks, and rental car companies to process and sell salvaged vehicles through digital auction tools [2]. Market Performance - Copart was highlighted as the fourth worst-performing stock in the Nasdaq-100, experiencing a decline of approximately 32% last year due to losing market share [1]. - The stock is currently trading at over 23 times this year's earnings estimates, indicating it is not considered a bargain at this time [1]. Competitive Landscape - The online auction sector for vehicles is characterized as a duopoly, with Copart being the larger and better-managed player compared to its main competitor, IAA, which has become more aggressive in pricing after being acquired by RB Global [2]. - A national insurance carrier has switched to IAA, further impacting Copart's market share [2]. Financial Performance - Copart's revenue and earnings growth have decelerated to just below 10% in the past 12 months, attributed to a spike in auto insurance leading to an increase in uninsured and under-insured motorists, which has reduced volumes through Copart's insurance vertical that accounts for 80% of its revenues [2]. Investment Decisions - Qualivian Investment Partners sold their position in Copart and initiated a new position in Brookfield Corp, citing the less rational competition and weakening fundamental backdrop as reasons for exiting [2].

Investment Strategy - Investors should focus on owning high-quality stocks and holding them long-term rather than engaging in frequent trading based on market volatility [1][2] - The emphasis is on managing personal investments and leveraging the power of compounding through individual stock ownership alongside index funds [2] Market Insights - Cramer advises investors to concentrate on stocks that open flat or decline early in the trading session, as these conditions may present buying opportunities at lower prices [3] - The importance of price-to-earnings (P/E) ratios is highlighted, with plans to educate investors on its significance for identifying potential upside in 2026 [3] Stock Analysis - PayPal Holdings, Inc. (NASDAQ:PYPL) is noted for its significant decline of over 31% last year, attributed to commoditization of its services and slow adaptation to new technologies, yet it remains a cheap stock at 10 times this year's earnings estimates [8] - Copart, Inc. (NASDAQ:CPRT) has faced a 32% drop due to market share loss, with its current valuation at over 23 times this year's earnings estimates, making it less attractive for investment at this time [9]

Core Insights - The analysis emphasizes Copart, Inc. (CPRT) as a high moat business with strong cash-generating capabilities and competitive advantages, suggesting it will remain viable for the next decade [1] - The investment strategy focuses on achieving at least 15 percent annualized returns, targeting companies with deeply discounted prices relative to their asset base, provided they are marketable [1] - The analyst has achieved an annualized time-weighted return of approximately 16 percent over three years and aims to continue outperforming this benchmark [1] Company Analysis - Copart, Inc. is highlighted as a strong investment opportunity due to its robust business model and market position [1] - The company is considered a potential takeover target, but it is essential that it maintains a strong business foundation regardless of the outcome of any acquisition attempts [1]

Core Insights - The analysis emphasizes Copart, Inc. (CPRT) as a high moat business with strong cash-generating capabilities and competitive advantages, suggesting it will remain viable for the next decade [1] - The investment strategy focuses on achieving at least 15 percent annualized returns, targeting companies with deeply discounted prices relative to their asset base, while also considering takeover targets that maintain strong business fundamentals [1] - The author has achieved an annualized time-weighted return of approximately 16 percent over three years, indicating a successful investment track record [1] Company Analysis - Copart, Inc. is highlighted as a business with a significant competitive edge, making it a strong candidate for long-term investment [1] - The focus on cash generation and marketability of assets is crucial for identifying potential investment opportunities [1] Investment Strategy - The investment approach prioritizes companies with strong fundamentals and a clear path to achieving substantial returns, while also being open to the possibility of acquisitions [1] - The strategy is designed to ensure that investments are sound even if takeover scenarios do not materialize [1]

Group 1: Fund Performance - Qualivian Investment Partners outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 69.2% and 61.3% on a gross and net basis since inception through September 30, 2025 [1] - The fund exceeded the S&P 500 by 32.7% and 26.1% respectively, on a gross and net basis [1] Group 2: Copart, Inc. Overview - Copart, Inc. (NASDAQ:CPRT) is an online auction and vehicle remarketing services company with a one-month return of 0.77% and a 52-week loss of 33.41% [2] - As of December 22, 2025, Copart's stock closed at $39.36 per share, with a market capitalization of $38.1 billion [2] Group 3: Investment Strategy - Qualivian Investment Partners sold its position in Copart, Inc. and initiated a new position in Brookfield Corp. [3] - The online auctions sector is characterized as a duopoly, with Copart being the larger and better-managed player compared to IAA, which has become more aggressive in pricing due to its acquisition by RB Global [3] - The increase in uninsured and under-insured motorists has led to a deceleration in Copart's revenue and earnings growth to just below 10% in the past 12 months [3] Group 4: Hedge Fund Interest - Copart, Inc. was held by 59 hedge fund portfolios at the end of the third quarter, a decrease from 61 in the previous quarter [4] - There is a belief that certain AI stocks offer greater upside potential and carry less downside risk compared to Copart, Inc. [4]

Group 1: Aoris International Fund Performance - Aoris International Fund's Class A (Unhedged) returned -2.6% after fees in Q3 2025, while the benchmark MSCI AC World Accumulation Index ex Australia rose by 6.5% in AUD [1] - The fund's Class C (Hedged) declined by 1.0%, compared to an 8.0% return for the benchmark [1] - Global equity markets experienced an 8.0% gain in local currencies, but currency fluctuations reduced the AUD return by 1.5% [1] Group 2: Copart, Inc. Overview - Copart, Inc. (NASDAQ:CPRT) is an online auction and vehicle remarketing services company, with a market capitalization of $37.966 billion as of December 18, 2025 [2] - The stock's one-month return was -3.71%, and it lost 32.63% of its value over the last 52 weeks [2] Group 3: Competitive Landscape and Investment Decision - Aoris International Fund expressed concerns about Copart's competitive strengths and long-term growth prospects due to IAA Inc. regaining market share after improving its operating performance [3] - As a result, Aoris sold Copart from its portfolio in early July 2025 [3] - The fund noted that while Copart has investment potential, certain AI stocks are perceived to offer greater upside potential and less downside risk [4]