How Will Copart Stock React To Its Upcoming Earnings?

Core Insights - Copart (NASDAQ: CPRT) is set to announce its earnings soon, with a current market capitalization of $40 billion and revenue of $4.6 billion over the past twelve months, achieving operational profitability with $1.7 billion in operating profits and a net income of $1.6 billion [2] Earnings Analysis - Historical data shows that Copart has had 19 earnings data points over the last five years, resulting in 7 positive and 12 negative one-day (1D) returns, indicating a 37% chance of positive returns [6] - The percentage of positive 1D returns increases to 45% when considering the last 3 years, with a median of 2.6% for positive returns and -1.8% for negative returns [6] Trading Strategy - A strategy to consider is to analyze the correlation between short-term (1D) and medium-term (5D) returns post-earnings announcements, as a positive 1D return suggests a potential long position for the following 5 days [7] - The correlation between 1D and 5D returns is noted to be the highest, which can guide trading decisions [7] Peer Performance - The performance of peers can influence Copart's post-earnings stock reactions, with historical data reflecting the performance of peer stocks that reported earnings just before Copart [7]