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If You Invested $1000 in Copart, Inc. a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Copart, Inc. (CPRT) ten years ago? It may not have been easy to hold on to CPRT for all that time, but if you did, how much would your investment be worth today?

Copart, Inc.'s Business In-Depth

With that in mind, let's take a look at Copart, Inc.'s main business drivers.

Based in Dallas, TX, Copart, Inc. was founded in 1982. The company provides online auction and a wide range of remarketing services to process and sell salvage and clean title vehicles. This is done mainly over the Internet, through its Virtual Bidding Third Generation (VB3) Internet auction-style sales technology.

Sellers are primarily insurance companies, banks and financial institutions, charities, car dealerships, fleet operators, and vehicle rental companies. Buyers include licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers and exporters, along with the general public.

Copart’s services include online supplier access, salvage estimation services, end-of-life vehicle processing, virtual insured exchange, transportation services, vehicle inspection stations, on-demand reporting, DMV processing and flexible vehicle processing programs, among others.

In the United States, Canada, Brazil, the Republic of Ireland, Finland, the U.A.E., Oman, Bahrain, and Spain, Copart sells vehicles primarily as an agent and earns revenue from sales transaction fees paid by vehicle suppliers and vehicle buyers, as well as the associated fees for services, such as towing and storage. In the United Kingdom and Germany, it operates on a principal basis, purchasing the salvage vehicle from insurance companies and reselling it to buyers. It also serves as an agent in the United Kingdom. In Germany and Spain, Copart generates revenue from sales listing fees for listing vehicles for insurance companies.

Copart acquires and develops hubs in new as well as existing regions as an expansion strategy. It believes that acquisitions and facility opening will strengthen its footprint across the United States, the U.K., Brazil, the Republic of Ireland, Germany, Finland, the U.A.E., Oman, Bahrain, and Spain.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Copart, Inc. if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in July 2011 would be worth $12,038.65, or a gain of 1,103.86%, as of July 14, 2021, according to our calculations. This return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 231.57% and the price of gold went up 9.50% over the same time frame.

Looking ahead, analysts are expecting more upside for CPRT.

Copart’s high activity levels in the United States and expansion efforts in the Canadian and European markets are expected to boost its prospects. Also, the company’s acquisitions and digital ramp up are likely to drive revenues. Copart’s recent strategic partnership with CHAMPtitles to introduce an automated digital platform for car sellers, to alleviate the need for manual paper and mail-oriented vehicle title processing, bodes well for future. Also, with the launch of Copart Max, the company has further stepped up its digital game. Increased demand for Copart’s vehicle remarketing services and higher average selling prices are buoying the firm’s profits and revenues. Also, low leverage of the firm increases its financial flexibility. Thus, the stock warrants a bullish stance right now.

The stock is up 10.14% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2021. The consensus estimate has moved up as well.
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