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 0.7%. By the end of trading, Copart fell $2.14 (-6.2%) to $32.28 on heavy volume. Throughout the day, 5,274,758 shares of Copart exchanged hands as compared to its average daily volume of 895,600 shares. The stock ranged in price between $31.14-$32.37 after having opened the day at $31.25 as compared to the previous trading day's close of $34.42. Other companies within the Specialty Retail industry that declined today were: Birks & Mayors ( BMJ), down 8.1%, Sport Chalet ( SPCHA), down 3.7%, Hollywood Media Corporation ( HOLL), down 3.5% and Dover Saddlery ( DOVR), down 3.0%.
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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 $4.4 billion and is part of the services sector. The company has a P/E ratio of 25.0, above the S&P 500 P/E ratio of 17.7. Shares are up 17.7% year to date as of the close of trading on Thursday. Currently there are no analysts that rate Copart a buy, 1 analyst rates it a sell, and 8 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, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Barnes & Noble ( BKS), down 7.8%, Zale Corporation ( ZLC), down 4.2%, Lithia Motors ( LAD), down 4.2% and Staples ( SPLS), down 3.1% , were all gainers within the specialty retail industry with PetSmart ( PETM) 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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