So here’s the thing I stumbled on—Copart, you know, the online vehicle auction place, is having a bit of a rough day. Their shares dipped, like, 12% by lunchtime on Friday. At least that’s what S&P Global Market Intelligence had to say.
They just dropped their earnings report, right? And so, they did have this 8% growth in sales and earnings per share. But, I guess that wasn’t enough to make the Wall Street crew happy. Missed the mark, and bam, the stock takes a nosedive.
Man, they were trading at 43 times their earnings before all this. Crazy high, huh? That’s ‘cause everyone thought they’d ride that double-digit growth wave forever. Guess not.
So, Copart does this niche thing—auctioning cars that have seen better days. Could be those headed to salvage yards, or maybe some trashed cars insurers wanna offload. Even rental companies sending out oldies. They’ve been doing it since ‘94 and turned into a total beast—if you invested back then, you’d have made, like, 398 times your money. Imagine that!
Anyway, getting wiggy about a short stretch of underwhelming data sounds a bit much when you look at the big picture. The world economy is a roller coaster right now, so what do we expect?
Interestingly, Copart’s management is kind of betting on tariffs to help them out. Weird, right? With tariffs cranking up replacement part costs, insurers might decide wrecks are better off totaled than repaired. More business for Copart, I reckon.
Even now, sitting at 36 times earnings, Copart isn’t exactly on the bargain shelf. But you know, given their lead in the market and how they’ve performed over time, I’m thinking about snagging more shares, especially with this price drop. Just a thought.
