Copart is a provider of online auctions and vehicle remarketing services. Co. provides vehicle sellers with a range of services to process and sell vehicles primarily over the internet through its Virtual Bidding Third Generation internet auction-style sales technology, which Co. refers to as VB3. Vehicle sellers consist primarily of insurance companies, but also include banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals. Co. sells the vehicles principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and to the general public.
When researching a stock like Copart, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from CPRT Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for CPRT stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the CPRT 200 day moving average ("CPRT 200 DMA"), while one of the most popular "shorter look-backs" is the CPRT 50 day moving average ("CPRT 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Copart. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the CPRT 200 DMA and the CPRT 50 DMA, we get a moving average convergence divergence indicator ("CPRT MACD"). The CPRT MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
Free CPRT Email Alerts:
Video: Technical Analysis