Copart Inc. (CPRT): Today's Featured Specialty Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Copart ( CPRT) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Copart fell $0.91 (-2.4%) to $37.18 on average volume. Throughout the day, 857,271 shares of Copart exchanged hands as compared to its average daily volume of 955,200 shares. The stock ranged in price between $37.10-$37.90 after having opened the day at $37.69 as compared to the previous trading day's close of $38.09. Other companies within the Specialty Retail industry that declined today were: Bluefly ( BFLY), down 10.1%, Sport Chalet ( SPCHB), down 4.7%, Big 5 Sporting Goods Corporation ( BGFV), down 3.7% and Odyssey Marine Exploration ( OMEX), down 2.5%.
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Copart, Inc. provides online auctions and vehicle remarketing services in the United States, Canada, and the United Kingdom. The company offers various services to process and sell vehicles over the Internet through its Virtual Bidding Second Generation Internet auction-style sales technology. Copart has a market cap of $4.6 billion and is part of the services sector. The company has a P/E ratio of 25.7, above the S&P 500 P/E ratio of 17.7. Shares are up 24.3% year to date as of the close of trading on Friday. Currently there is 1 analyst that rates Copart a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Copart as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Lentuo International ( LAS), down 10.6%, Barnes & Noble ( BKS), down 8.1%, Hastings Entertainment ( HAST), down 5.4% and Sport Chalet ( SPCHA), down 5.0% , were all gainers within the specialty retail industry with Francescas Holdings ( FRAN) being today's featured specialty retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the specialty retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the specialty retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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