Copart, Inc. ( CPRT ) shares are trading lower Friday after the company reported worse-than-expected second-quarter financial results on Thursday after the market closed.

Copart ( CPRT ) shares are approaching critical lows. What’s behind CPRT weakness?

Earnings And Revenue Fall Short; Gross Profit And Net Income Slide

Copart ( CPRT ) reported earnings per share of 36 cents, missing the consensus estimate of 40 cents. In addition, the company reported revenue of $1.12 billion, missing the consensus estimate of $1.14 billion.

Revenue declined 3.6% year-over-year. Gross profit fell 6.2% to $492.8 million, while net income attributable to Copart ( CPRT ) decreased 9.5% to $350.7 million.

Technical Weakness Deepens As Shares Hover Near 52-Week Lows

Copart Inc ( CPRT ) is currently trading 14.2% below its 20-day simple moving average (SMA) and 17% below its 100-day SMA, indicating short-term bearishness amidst a longer-term downtrend. Over the past 12 months, the stock has declined by 35.33%, reflecting sustained selling pressure. Additionally, it is trading near its 52-week low of $36.52, suggesting that the stock is testing critical support levels.

The RSI stands at 38.58, indicating that the stock is neither oversold nor overbought, suggesting a lack of strong buying or selling momentum at this level. Meanwhile, the MACD is currently at -0.6242, below its signal line at -0.3064, which points to increasing bearish momentum and may indicate further declines if the stock does not stabilize.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Copart ( CPRT ), highlighting its strengths and weaknesses compared to the broader market:

Value: Moderate (Score: 55.29/100) — Reflects a fair valuation relative to market peers.

Quality: Strong (Score: 69.47/100) — Indicates a robust business model and solid financial health.

Momentum: Weak (Score: 7.73/100) — Stock is underperforming the broader market significantly.

The Verdict: Copart’s Benzinga Edge signal reveals a mixed performance landscape. While the Quality score indicates a strong underlying business, the extremely low Momentum score suggests significant challenges ahead, potentially impacting short-term stock performance.

Copart Shares Edge Lower

CPRT Price Action: At the time of publication, Copart ( CPRT ) shares are trading 9.99% lower at $33.89, according to data from Benzinga Pro.

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