Copart operates a unique online vehicle auction platform with a wide economic moat built on its irreplaceable network of salvage yards and digital marketplace. However, the stock has been under significant pressure, declining over 36% in the past year and trading near its 52-week low of $36.52. The current P/E of 14.4 with $2.61 EPS represents a substantial de-rating from the premium multiples Copart historically commanded, suggesting the market has repriced growth expectations. The bull case emphasizes the asset-light platform advantages, international expansion potential, and the countercyclical nature of its salvage business during economic downturns. Insurance companies must use such services regardless of economic conditions. The bear case points to the sharp decline as potentially signaling structural challenges, including rising competition and potential shifts in insurance industry total loss thresholds. At these levels, Copart may offer compelling value, but the momentum is decidedly negative.

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Site: Copart (ID: 2031)