Jim Cramer on Copart: “Too Soon to Stick Your Neck Out”

Copart, Inc. (NASDAQ:CPRT) is one of the S&P 500 and Nasdaq-100 stocks Jim Cramer commented on. Cramer highlighted the stock while discussing the worst-performing stocks, as he said:

“Fourth worst performing in the Nasdaq-100 was a, really for a long time, very reliable company called Copart, which helps insurance companies, banks, and rental car outfits to process and sell salvaged vehicles mostly via the internet. Copart tumbled roughly 32% last year because they’re losing market share. Is it salvageable? Look, with a stock trading at over 23 times this year’s earnings estimates, no bargain, too soon to stick your neck out.”

Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels

Copart, Inc. (NASDAQ:CPRT) runs an online vehicle auction and remarketing platform that helps sellers process and sell vehicles through virtual bidding and digital auction tools. Qualivian Investment Partners stated the following regarding Copart, Inc. (NASDAQ:CPRT) in its third quarter 2025 investor letter:

“We sold our position in Copart, Inc. (NASDAQ:CPRT) and initiated a new position in Brookfield Corp. (BN). Copart Inc. (CPRT) provides online auto auctions and vehicle remarketing services. It offers vehicle sellers, mostly comprised of P&C insurance companies, a full range of services to process and sell vehicles (usually autos involved in a crash and deemed a “total loss”) primarily over the internet through proprietary online auction technology. The online auctions sector is a duopoly in which CPRT is the larger and better managed player. The other main player, IAA, was purchased by RB Global (RBA). Armed with RB Global’s deeper pockets, IAA has been more aggressive in the past year with its pricing to gain market share from CPRT and it succeeded with a national insurance carrier switching to IAA. Furthermore, the spike in auto insurance over the past 4–5 years has resulted in an increase in uninsured and under-insured motorists, which has resulted in lower volumes coming through CPRT’s insurance vertical (80% of revs), resulting in CPRT’s revenue and earnings growth decelerating to just below 10% in the past 12 months. With less rational competition and a weakening fundamental backdrop, we decided to exit CPRT and redeploy proceeds into Brookfield Corp.”

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Disclosure: None. This article is originally published at Insider Monkey.