11 Best Counter Cyclical Stocks to Buy According to Analysts

6. Copart, Inc. (NASDAQ:CPRT)

Average Upside Potential: 11.35%

Number of Hedge Fund Holders: 53

​Copart, Inc. (NASDAQ:CPRT) is a global leader in online vehicle auctions and remarketing services, facilitating the sale of used, wholesale, and repairable vehicles. The company operates over 200 locations across 11 countries, including the US, Canada, the UK, Germany, and Brazil. CPRT’s innovative online auction platform connects vehicle sellers (primarily insurance companies, but also dealerships, rental car businesses, and financial institutions) with a diverse buyer base that includes dismantlers, rebuilders, used vehicle dealers, exporters, and the general public. During economic slowdowns, CPRT often sees increased activity as more vehicles are deemed total losses, leading to a higher volume of salvage vehicles entering its auctions.

Copart, Inc. (NASDAQ:CPRT) reported strong performance with global revenue increasing 14% to nearly $1.2 billion and GAAP net income rising 19% to over $387 million. The company experienced 8% growth in global unit sales, with US insurance unit volume increasing about 9% YoY, or approximately 2% when excluding catastrophic units. Total loss frequency hit an all-time high of 23.8% in the fourth quarter in the United States, partly due to storm events, while the full year trend of 22.2% represents an all-time annual high. The company’s Title Express platform has shown significant success, processing well over 1 million titles per year, with no carrier who has started with Copart taking the service back in-house.

Copart, Inc. (NASDAQ:CPRT) maintains a strong financial position with over $5 billion of liquidity, comprising nearly $3.8 billion in cash and over $1.2 billion in revolving credit facility capacity. The company continues to invest in technology, real estate, and people to fuel future growth while expanding services with sellers beyond the insurance industry to include financial institutions, rental car fleets, and corporate fleets. The Blue Car business, which services bank, rental, and fleet customers, demonstrated strong performance with YoY growth of over 27%. The company’s AI-enabled image recognition tools are empowering insurance companies to total cars more accurately and effectively. With a whopping 215% stock price return in the last 5 years, CPRT is among the best counter cyclical stocks.