The business holds an excellent balance sheet
Copart, Inc. (NASDAQ: CPRT) is an American company that provides an online vehicle auction platform, linking globally. Its platform provides services to automotive resellers such as insurance, rental car, fleet, and finance companies in 11 countries. At last glance, CPRT is trading up 0.3% at $64.10.
Regarding the stock, CPRT has shed 15% in 2022, but are inching closer to its mid-August highs. Moreover, Copart remains overvalued at a forward price-earnings ratio of 26.11 and a price-sales ratio of 8.60, when considering the business’ growth estimates for the upcoming years. The security also remains well above the 80-day moving average, a trendline which it surpassed following a Nov. 10, post-earnings bull gap.
Furthermore, the business holds an excellent balance sheet with $1.54 billion in cash and $115.72 million in total debt, making CPRT an intriguing long-term option despite its high valuation.
Now might be the perfect time for investors to speculate on the stock's next move with options. Copart stock's Schaeffer's Volatility Index (SVI) of 34% sits in the 33rd percentile of its annual range, indicating that now is an affordable time to play auto parts stock.
Switching gears, short-term options traders are quite call-biased. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.33, which stands higher than only 5% of readings from the past year.