Score 8.6 (out of 10): COPART INC poised to seasonally rally by +7.8% during the next 90 days.

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What’s Going On Here?

COPART INC has developed an interesting business model, the company provides vehicles suppliers, primarily insurance companies, with a variety of services to process and sell salvage vehicles through auctions. Analysts estimate COPART INC’s revenue have climbed +26% YoY, compared to +9.4% for other US motor vehicle merchant wholesalers nominal retail sales numbers. The company will report earnings on November 17th.

Why Now?

COPART INC indicates an interesting 90 days seasonal set up. During similar occasions, COPART INC shares had a median return of +7.8% – based on 10 historical occasions with 8 of those showing positive returns (80%). This buy signal for COPART INC received a high score of 8.6 (out of 10). This insight was generated with last price of 156.53.

What’s This Company About?

COPART INC is in the Distribution/Wholesale business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth -1.4% less (average). Ticker symbol: CPRT US.

What’s My Risk / Reward and Time Horizon?

We found 90 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 168.68 (+7.8%) has been reached. Based on COPART INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 148.63 (last price at 156.53), which is equivalent to a -5% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

0.8% (November-2021), 4.8% (November-2020), 7.6% (November- 2019), 5.1% (November-2018), 18.2% (November-2017), 4.4% (November-2016), 8.8% (November-2015), 8.5% (November-2014), 6.8% (November-2013), 4.8% (November-2012)

Summary:

NameCOPART INC
ViewUp
Star (1 to 10)8.6
Target+7.8%
Time90 days
Hit Rate80%

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