Why Did Copart Stock Rise 10%?

Core Viewpoint - Copart's stock price increased by 10% following positive quarterly results, with sales of $1.15 billion and earnings of$0.37 per share, surpassing consensus estimates [1] Group 1: Financial Performance - Copart's revenue rose from $2.7 billion in 2021 to$4.2 billion in 2024, marking a 57% increase [2] - The company's operating income increased from $1.1 billion in 2021 to$1.6 billion in 2024, a 38% rise, although the operating margin declined from 42.2% to 37.1% [3] - In Q1, Copart's revenue of $1.15 billion reflected a 12.4$38 in early 2022 to $63 currently, with a 29% gain this year, outperforming the S&P 500 index, which is up 25% [2][4] - The stock's annual returns have been volatile, with returns of 19% in 2021, -20% in 2022, and 61% in 2023 [4] Group 3: Valuation and Market Outlook - CPRT is currently trading at a price-to-sales (P/S) ratio of 14.4x, above its historical average of 11.4x over the past three years [5] - Given rising costs and the current valuation, no significant upside for CPRT stock is expected [5]