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Copart Inc – Top Business Stocks

Copart Inc – Top Business Stocks

Recently, there were news reports of prices of used vehicles going up. Some attributed this trend to rising inflation, while some others spoke about how the re-opening of the economy was causing pent-up demand to get released across a range of sectors, including vehicle buying. Stocks of companies like CarMax performed very well during the pandemic. Companies that have invested in technology have been the ones that we’re able to weather the economic effects of the pandemic. One such company is Copart Inc. It is among the leading vehicle resellers and online auction companies in the US. The company has over 200 physical locations and an international presence in 11 countries. It was on the list of the Fortune 2020 Future 50 companies. Copart counts scrap vehicle dealers, insurance companies, banks, and finance companies among its customers. It owns brands like CashForCars.com, CrashedToys, National Powersport Auctions, and Copart. If you are looking for long-term business stock, then it may be a good idea to check out Copart.

Copart Releases Q32021 Earnings Numbers

On 20th May 2021, Copart released its third-quarter 2021 earnings numbers. Total revenue increased substantially from $550 million in Q32020 to $733 million. Operating income also increased significantly from $195 million in Q32020 to $328 million. Net income was also impressive, as it grew from $147 million to $286 million. Effectively, net income had almost doubled year on year. Lastly, net income per share on a diluted basis grew from $0.62 in Q32020 to $1.19 in Q32021.

Commenting on the results, company CEO Jeffrey Liaw said that driving activity was rebounding though it was still down about 25% from the pre-pandemic levels. He also believed that driving activity per capita is poised to increase at a moderate rate over the long term. Such trends indicate that Copart could be among the top business stocks to invest in.

Long Term Business Stock

There seems to be a supply crunch for used and new vehicles. The semiconductor and chip shortage issues have also affected the production plans of the large auto majors. These could be near-term considerations for investors. Copart’s stock has grown by about 70% over a one-year period from July 2020 to July 2021.

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