Copart: At Risk Of A Disappointing Quarter (Archive)
Copart faces near-term headwinds from falling used car prices, weak volumes and margins.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- I like Copart, Inc.'s business but currently, I see too many headwinds continuing to affect the stock:
- Used car market pricing should fall further.
- Non-retail used car volumes are de-growing faster.
- There is a risk of continued margin misses.
- I am keen to hear management's commentary in the upcoming earnings call, as some of the high-frequency data suggests the quarter has not gone as per their expectations.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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