Copart

CPRT

Market cap $39.9B

Alphabet continued to make significant contributions to performance during the quarter. Taiwan Semiconductor Manufacturing also contributed to performance during the quarter. Old Dominion Freight Line contributed to performance as investors rotated into more economically sensitive sectors late in the year. Meta Platforms was a leading detractor from performance during the quarter despite reporting +26% revenue growth.

We believe that Copart (CPRT) stock could represent a solid value buy. The global vehicle auction and remarketing leader is benefiting from long-term trends such as rising total-loss vehicle volumes, increased insurance complexity, and growing demand for online auto auctions.

The latest trading day saw Copart, Inc. (CPRT) settling at $38.54, representing a +2.03% change from its previous close.

Copart, Inc.'s sharp growth deceleration and multiple compression reflect cyclical headwinds (CAT normalization, insurance affordability, competitive noise from IAA), not a breakdown of its structural advantages. At ~24x earnings versus a historical >30x CPRT multiple, the market is pricing in conservative growth assumptions despite Copart's capital-light model, strong ROIC, net cash balance, and embedded real-asset optionality. I see this as an opportunity to realize double-digit returns on a go-forward basis.

We believe Copart (CPRT) stock could represent a solid value investment. Currently, it is trading below the average valuation, while demonstrating acceptable revenue growth and strong profit margins alongside its moderate valuation.

Although the S&P 500 has returned 19.3% so far this year, dozens of stocks are showing significant declines for 2025.

Copart, Inc. receives a Buy rating, supported by a strong moat, capital-light model, and a rock-solid, debt-free balance sheet with $5.2 billion in cash. Despite recent revenue and unit volume declines, CPRT's network effects, strategic land ownership, and financial flexibility underpin long-term competitive advantages. Short-term risks include market share loss to RB Global, Inc. (RBA) and weak quarterly figures, but historical outperformance and attractive valuation offer compelling entry points.

The Touchstone Mid Cap Growth Fund outperformed its benchmark, the Russell Midcap® Growth Index, for the quarter ended September 30, 2025. From a factor perspective, the Fund's overweight exposure to size was a relative tailwind to performance, offsetting a headwind from being underweight volatility. Consumer Discretionary was the largest source of relative gains.

The most oversold stocks in the industrials sector presents an opportunity to buy into undervalued companies.

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