5 Best Used Car Stocks To Buy Now

1. Copart, Inc. (NASDAQ:CPRT)

Number of Hedge Fund Holders: 50

Copart, Inc. (NASDAQ:CPRT) is a Texas-based company that offers online auctions and vehicle remarketing services. The company sells its products to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters. Copart, Inc. (NASDAQ:CPRT) is one of the top used car stocks to buy. 

On September 9, Baird analyst Craig Kennison assigned an Outperform rating to Copart, Inc. (NASDAQ:CPRT) but lowered the price target on the shares to $135 from $150. The analyst said with used car prices declining, he expects the total loss rate to bottom soon, eventually supporting more assignments at the expense of unit profitability.

According to Insider Monkey’s Q2 data, 50 hedge funds were bullish on Copart, Inc. (NASDAQ:CPRT), compared to 44 funds in the last quarter. Jim Simons’ Renaissance Technologies held the largest stake in the company, comprising 1.08 million shares worth $117.5 million. 

Here is what Wedgewood Partners specifically said about Copart, Inc. (NASDAQ:CPRT) in its Q3 2022 investor letter:

“Copart, Inc. (NASDAQ:CPRT) reported +8% growth in operating income driven by a +5% increase in volume of totaled vehicles processed and an +8% increase in the value of those units. Although overhead expenses outstripped revenues in the face of persistent wage inflation, Copart can contain these costs over a multi-year time horizon. The Company maintains an effective duopoly in U.S. salvage vehicle auctions (along with IAA Inc.) and has been able to flex is salvage business to conform to the changes filtering through from the unprecedented supply (and demand) challenges of the new and used vehicle market. This is due to Copart’s unique, two-sided network platform that consists of the largest North American P&C insurance carriers and automobile dealerships, which are getting increasing access to foreign salvage buyers. As automobiles are becoming more sophisticated with hard-to-repair electronics and computers on-board, we think Copart is helping insurance partners find a life “after salvage” with consumers, particularly outside the U.S., that place a higher value on these vehicles, often simply due to different regulatory regimes. Copart can grow at attractive double-digit rates as this phenomenon continues for the foreseeable future.”

You can also take a look at 10 Biggest Car Companies In the World By Sales and 12 Best Emerging Stocks To Buy Now. 

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