5 Best Hurricane and Natural Disaster Stocks to Buy Now

3. Copart, Inc. (NASDAQ:CPRT)

Number of Hedge Fund Holders: 50     

Copart, Inc. (NASDAQ:CPRT) provides online auctions and vehicle remarketing services. It is one of the premier hurricane stocks to invest in. Since natural disasters force people to relocate, the demand for vehicles rises after disasters. On September 09, Baird analyst Craig Kennison kept an Outperform rating on Copart, Inc. (NASDAQ:CPRT) stock and lowered the price target to $135 from $150, adding that with used cars prices falling, it is expected that the total loss rate will go down soon, eventually driving more assignments at the expense of unit profitability.

Among the hedge funds being tracked by Insider Monkey, California-based investment firm Renaissance Technologies is a leading shareholder in Copart, Inc. (NASDAQ:CPRT), with 1 million shares worth more than $117 million. 

In its Q2 2021 investor letter, Merion Road Capital Management, an asset management firm, highlighted a few stocks and Copart, Inc. (NASDAQ:CPRT) was one of them. Here is what the fund said:

“Many of our companies reported very strong earnings back in April. The market shrugged these off as it pondered how much growth would be sustainable, are inflationary trends transitory, and when interest rates will rise. While a slow-down in the broader economic recovery would hurt our portfolio, I remain positive on our position’s market positioning and longer term trends.

For instance, Copart, Inc. (NASDAQ:CPRT) reported 33% YoY revenue growth with EBIT margins expanding to 45%, an all-time high. While the company benefitted from inflation (an interesting hedge the market largely ignored earlier in the year), sustainable increases in ASPs and service offerings bode well for revenue per vehicle growth. Management noted that traffic is still down 20% or more as non-US markets are several months behind the United States on reopening and vaccinations. This volume boost should provide good tailwinds in the coming months.”