Copart Stock Faces Uncertainty After 2025 Pullback

Copart's shares have retreated nearly 30% from their 52-week high as auto market headwinds pressure the salvage-auction leader. Fiscal Q4 results showed revenue growth slowing to 5% year-over-year, down from 7.5% in the prior quarter, signaling cooling momentum in the Core service business.

The company's marketplace—which connects insurers and financial institutions with global buyers—historically thrives during periods of high vehicle total losses and strong used-car valuations. Current softness in these key drivers has created what some view as a potential entry point for long-term investors, though near-term prospects remain clouded.

While full-year figures appear robust with 10% revenue growth and 14% EPS expansion, the deceleration in quarterly performance suggests the business isn't immune to broader automotive sector pressures. Market participants now weigh whether Copart's high-quality platform justifies investment at current levels, or if further deterioration in used vehicle markets could extend the decline.