Copart, Inc. CPRT reported third-quarter fiscal 2025 (ended April 30, 2025) adjusted earnings per share of 42 cents, which came in line with the Zacks Consensus Estimate. The bottom line increased 7.7% year over year. The online auto auction leader generated revenues of $1.21 billion, lagging the Zacks Consensus Estimate of $1.24 billion. The top line, however, rose 7.5% from the year-ago reported figure.
CPRT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Copart, Inc. Price, Consensus and EPS Surprise
Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote
Key Tidbits
Copart’s fiscal third-quarter service revenues came in at $1.03 billion, which increased from $946.6 million recorded in the year-ago period but missed the Zacks Consensus Estimate of $1.06 billion. Service revenues accounted for 85.4% of total revenues. While U.S. service revenues increased 8% year on year, international service revenues grew 18%.
Vehicle sales totaled $176.8 million in the quarter, which declined from the prior-year quarter’s $180.6 million and fell short of the Zacks Consensus Estimate of $187 million. While sales in the United States surged 22%, international revenues from this business declined 25%.
(Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
While facility operations expenses rose 12.3% year over year to $439.4 million, the cost of vehicle sales rose 4.2% to $169.7 million. Facility depreciation and amortization came in at $48.16 million, up 5.2% year over year. Facility stock-based compensation increased 18.6% to $2.15 million.
Gross profit was up 5.1% year over year to $552 million. General and administrative expenses rose 14.8% from the prior-year quarter to $87.4 million. Total operating expenses rose 10.2% to $760 million.
Operating income rose to $451.5 million from $437.2 million recorded in the year-ago quarter. Net income also grew 6.1% year over year to $405.3 million.
Copart had cash, cash equivalents and restricted cash of $2.36 billion as of April 30, 2025, compared with $1.5 billion as of July 31, 2024.
Net cash from operating activities and capex during the quarter under discussion totaled $1.36 billion and $481.3 million, respectively.
Management’s Commentary
Although global insurance volumes were essentially flat year over year, total loss frequency in the United States rose to 22.8% in the first calendar quarter of 2025—up about 100 basis points from the prior year—driven by increasing vehicle complexity and repair costs. This trend benefits Copart’s business model, as a higher total loss rate leads to more salvage vehicles, a key driver of its revenues.
Management highlighted ongoing investments in storage capacity, technology, and operations to stay prepared for both everyday needs and storm-related surges. In the long term, rising total loss frequency should support growth, though near-term volumes may be affected by economic factors like more uninsured or underinsured drivers.
Peer Releases
ACV Auctions Inc. ACVA released its first-quarter 2025 results on May 7. It came out with quarterly earnings of 4 cents per share, which beat the Zacks Consensus Estimate of 2 cents per share. This compares to break-even earnings per share a year ago. Over the last four quarters, the company surpassed EPS estimates twice and matched on the other two occasions.
ACV Auctions posted revenues of $182.7 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.16%. This compares to year-ago revenues of $145.69 million. For the second quarter, the company expects revenues and adjusted EBITDA in the band of $193-$198 million and $18-$20 million. ACV Auctions forecasts full-year 2025 sales to increase 20-23% year over year.
RB Global, Inc. RBA released its first-quarter 2025 results on May 7. It came out with quarterly earnings of 89 cents per share, beating the Zacks Consensus Estimate of 86 cents per share. This compares to earnings of 90 cents per share a year ago. The company surpassed EPS estimates in each of the trailing four quarters.
RB Global posted revenues of $1.11 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 9.03%. This compares to year-ago revenues of $1.06 billion. RB Global’s deal to acquire J.M. Wood Auction for roughly $235 million is expected to be closed in the second or third quarter of 2025. RBA declared a quarterly cash dividend of 29 cents/share to be paid on June 20, 2025, to shareholders as of May 29, 2025.
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Copart's Q3 Earnings In Line With Estimates But Sales Miss

2024 is shaping up to be a good year for the e-commerce industry, as it continues to take away big slices of the total retail pie. Commerce Department numbers are proof of this trend: e-commerce sales in the third quarter of 2024 grew 7.4% over 3Q23 (2.6% sequentially), with total retail sales increasing 2.1% (1.3% sequentially).
E-commerce accounted for around 16.2% of total U.S. retail sales. The fourth quarter, being the holiday quarter, is always the strongest for the industry. Therefore, this is a good time to jump into some ecommerce stocks, as the Q4 earnings season gathers momentum. Our stock picks for this season are ACV Auctions ACVA, Amazon AMZN and JD.com JD.
The convenience of online shopping remains the top reason for ecommerce volumes and this is particularly true of Gen-Z, which is, increasingly, the more relevant component of sales. Many of these buyers have grown up on the Internet and are accustomed to a high level of digitization.
They are also likely to hang out on popular social media platforms, allowing themselves to be influenced by the latest trends there. This is driving an entirely new perspective on the ecommerce space, one that revolves around digital influencers and appears to be expanding with more advanced technology such as AR/VR, social commerce and the Metaverse.
The 2024 holiday sales have come in extremely strong. Adobe Analytics, which marks the season from Nov. 1 to Dec. 31 has said that steep discounting (30.1% off the list price in electronics and 28% on toys), mobile shopping (54.5% of shopping was on smartphones) and artificial intelligence (as chatbots and shopping assistants powered by generative AI) played a big role this season. The research firm said that in 2024, consumers spent 8.4% more than the last year.
Salesforce agrees that it was a record-breaking season, with discounts averaging 26% during cyber week and the jump in online sales somewhat spread out over a longer period (up 15% in the preceding week and 10% in the following week). Mobile accounted for 67-69% of orders and wallet usage grew 10%. The research firm said that escalating supply chain costs limited deep discounts. Also, 19% of orders was influenced by AI and generative AI usage grew 25%.
While growth trends are exciting to say the least, valuation tends to be rich because of the positive sentiments at both sell side analysts and the general public. So, it’s important to choose wisely.
About the Industry
Internet - Commerce continues to evolve as the technologies driving it advance.
On one side are increasingly powerful and capable user devices. On the other are increasingly sophisticated platforms often combining chatbots and/or social media. While AI continues to deliver increased user satisfaction, the metaverse promises another paradigm shift.
Differentiation comes from better technology for improved showcasing, easier navigation and payment, speedier delivery and returns, brand building, comparison shopping, loyalty, etc. as well as good customer service and more shipping options, which generally tip the scales in favor of larger players. Particularly so because there is fierce price competition, necessitating deep discounting in many cases.
Current Trends Driving the Internet-Commerce Industry
The total retail experience between physical and digital continues to blur, as most consumers blend their online and offline activities. This usually takes the forms of research online and buy in-store or buy online and pick up in-store. Since convenience is the main requirement, any experience that increases the speed of delivery/pickup is preferred. This may entail increased reliance on robots, self-driven delivery vehicles and drones that could ease bottlenecks and make deliveries smoother and cheaper. Therefore, it isn’t just the online-first retailers that are building a physical presence, but also those that have traditionally been physical retailers that are digitizing to various degrees, or growing themselves a substantial digital store-front.
Another notable trend is a subscription format for repeat-use items. This makes it easier for the consumer to order and for the retailer to plan. Retailers usually offer some kind of discount to consumers choosing this option, which makes it more attractive. The trend is expected to expand going forward as both tangible and intangible commodities and low-value and high-value items are increasingly sold ‘as-a-service.’
Direct access to the consumer is something that no retailer can afford to pass up because this is the only way to acquire customer data. Since some of the larger companies are already providing services based on customer data (such as Amazon’s AI-powered assistants), buyers are getting used to these services. Because of the many details involved in satisfying a customer, data mining has grown in importance over the years, with the party controlling the customer’s data being best positioned to identify and service demand while also delivering the desired experience. Most of the big ecommerce players are also into payments processing, which gives them further insight into a customer’s tastes, preferences and buying habits. As machines read and process customer data, they can create programs and processes to maximize customer satisfaction, drive sales and minimize returns. Artificial intelligence, as used by companies like Amazon, already decides how competitive a player is. So harnessing big data has become imperative for survival.
The macroeconomic situation continues to evolve, although we can probably say with confidence that a deep recession doesn’t appear to be in the offing. On the other hand, rate cuts have started, boosting consumer sentiments. Therefore, although today’s consumer is thrifty, the easing of pressure on their disposable incomes can only be a good thing. For producers, both supply chain issues and labor tightness has eased. Global uncertainties continue to weigh on foreign exchange effects for companies with international operations. Overall, industry players will continue to see the benefits of operating leverage they have built up in the last few years. The importance of having a digital presence has never been greater, particularly considering the fact that the retail ecommerce market continues to expand into new product segments and geographies, and consumers continue to prefer the convenience of online shopping.
A trend that Gen-Z is popularizing is social commerce. Social commerce means the ability to discover, research, buy and checkout on a social media platform, often and increasingly more so, through influencers. Brands usually have store fronts on these platforms where influencers also discuss their products, thus driving traffic to them. The social element of shopping that ecommerce had taken out is thus returning through this route. Since social commerce first became popular in China, it isn’t surprising that the Chinese social media platform TikTok that’s also very popular with Gen Z is the number one place for social commerce. But Facebook, Instagram and a host of others are also very popular.
Zacks Industry Rank Indicates Strength
The Zacks Internet - Commerce industry is a rather large group within the broader Zacks Retail And Wholesale sector. It carries a Zacks Industry Rank of #70, which places it in the top 28% of 250 Zacks industries.
Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1. So the group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates positive near-term prospects.
Ecommerce being in the top 50% of Zacks-ranked industries is the result of its relative performance versus others. What we’re seeing in the aggregate estimate revisions is more or less steady improvement in estimates over the past year. The aggregate earnings estimate for 2024 is up 17.9%. The 2025 number dipped sharply in March last year but has gained 12.6% since. The rate cuts this year should have a positive impact on spending, likely providing buoyancy to estimates.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Generates Strong Shareholder Returns
Over the past year, the Zacks Electronic - Commerce Industry has traded relatively close to the broader Retail and Wholesale sector as well as the S&P 500, although usually at a premium to both.
The stocks in this industry have collectively gained 43.5% over the past year, compared to the 31.8% gain for the broader Zacks Retail and Wholesale Sector and the 24.8% gain for the S&P 500.
One-Year Price Performance
Image Source: Zacks Investment Research
The Industry is Overvalued
Historically, the industry has traded at a premium to the sector as well as the S&P 500. Its current price-to-forward 12 months’ earnings (P/E) of 26.6X represents a premium of 17.5% to the S&P 500 and 4.5% to the broader retail sector, which are currently trading at 22.64X and 25.45X, respectively. It’s worth noting, however, that the industry is currently trading at a slight premium to its own median level of 25.42X, which seems to point to overvaluation.
Forward 12 Month Price-to-Earnings (P/E) Ratio
Image Source: Zacks Investment Research
3 Stocks Worth Considering
The improving prospects mean that there are a large number of stocks currently worth picking, especially because of the significant variety that exists in this industry in terms of lines of business, business model, location and so forth. This is also the reason that choosing can be tricky. We have used our proprietary ranking system to pick 3 stocks that appear attractive today.
ACV Auctions Inc. (ACVA): Buffalo, New York-based ACV operates a digital marketplace connecting buyers and sellers of wholesale vehicles on auction. It offers a comprehensive list of services related to vehicle sales so buyers can take informed decisions and correctly estimate prices. It also offers inventory management and financing, vehicle reconditioning and storage, support services like data-based insights into the condition and value of used vehicles, as well as a host of other related services for dealers and commercial partners.
ACV’s business is limited by ongoing shortage of used vehicle inventory and a softer retail market. The company continues to scale operations and grow its suite of dealer solutions to take additional share at commercial buyers.
Analyst estimates for 2024 and 2025 have not changed in the last 60 days and at current levels, represent 160% growth in 2024 followed by 517% growth in 2025. This is expected to come off some stellar revenue growth of 32% in 2024 and 24% the following year.
Investors are certainly piling into this Zacks #1 (Strong Buy) ranked stock, with the shares up 54% in the past year.
Price & Consensus: ACVA
Image Source: Zacks Investment Research
Amazon, Inc. (AMZN): Seattle, Washington-based Amazon is one of the leading online marketplaces in the world. It has developed its business around the Prime loyalty program that drives sales across merchandise and media categories. The online business is supplemented with broad physical presence, augmented by the acquisition of the premium grocery company Whole Foods Market back in 2017. Amazon also enjoys a dominant position in the in the Infrastructure as a Service (IaaS) space, thanks to Amazon Web Services (AWS).
The company’s sheer size and scale allow it to offer products at some of the cheapest prices. Amazon is known for its huge discounts and deals, and the number of services it piles into Prime has ensured a subscription revenue channel. Amazon has steadily increased prices over the years, but the user base remains sticky. Its profitability depends on the AWS business, where it still enjoys first-mover advantage. With access to humongous amounts of data, Amazon has developed some AI-powered products to make the most of generative AI and other developments in the space.
Despite its huge business volumes, analysts are optimistic about double-digit revenue and earnings growth in 2024 and 2025. For 2024, they expect 10.9% revenue growth and 82.4% earnings growth. For 2025, revenue and earnings growth are expected to be a respective 10.8% and 20.1%. In the last 30 days, analyst estimates for 2024 and 2025 have increased 10 cents (1.9%) and 12 cents (1.9%).
The shares of this Zacks Rank #2 (Buy) company up 45.6% over the past year.
Price & Consensus: AMZN
Image Source: Zacks Investment Research
JD.com, Inc. (JD): Beijing-based JD offers ecommerce platforms, along with associated logistics, real estate, asset management services, storage and other management services in China. Although its range of electronic goods is extensive, it also offers general merchandise, healthcare and industrial supplies. It also supplies data, technology and other solutions facilitating the digitization of enterprises.
The company is continuing to see improved consumer sentiments, which along with efforts to boost user experience and increase user mindshare is driving top line growth. At the same time, supply chain buildup for stronger scale and efficiency are helping profitability. In the last quarter, its revenue and earnings growth came on the back of the general merchandise category, as the company was able to leverage the Chinese government’s trade-in program designed to boost domestic consumption and economic growth, as well as Singles Day shopping. Its broad selection, competitive pricing and good customer service no doubt helped. The strong momentum in the business is likely to ensure payouts to investors in the form of both dividends and share repurchases.
In the last seven days, the Zacks Consensus Estimate for 2024 has increased 7 cents (1.7%). For 2025, it is up 9 cents (2.1%). Analysts expect earnings growth of 31.7% in 2024 and 8.8% in 2025.
The Zacks Rank #2 stock is up 73.6% over the past year.
Price & Consensus: JD
Image Source: Zacks Investment Research
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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eCommerce Industry on Steroids: 3 Stocks to Cash In

Coupang, Inc. (CPNG) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 200%. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced earnings of $0.07, delivering a surprise of 600%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Coupang, which belongs to the Zacks Internet - Commerce industry, posted revenues of $7.87 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.37%. This compares to year-ago revenues of $6.18 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Coupang shares have added about 58.7% since the beginning of the year versus the S&P 500's gain of 19.8%.
What's Next for Coupang?
While Coupang has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Coupang: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.01 on $8.36 billion in revenues for the coming quarter and -$0.02 on $30.63 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, ACV Auctions Inc. (ACVA), is yet to report results for the quarter ended September 2024. The results are expected to be released on November 7.
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
ACV Auctions Inc.'s revenues are expected to be $160.99 million, up 35.3% from the year-ago quarter.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Coupang, Inc. (CPNG) Surpasses Q3 Earnings and Revenue Estimates

Below is Validea's guru fundamental report for ACV AUCTIONS INC (ACVA). Of the 22 guru strategies we follow, ACVA rates highest using our Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
ACV AUCTIONS INC (ACVA) is a mid-cap value stock in the Retail (Specialty) industry. The rating using this strategy is 40% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ACV AUCTIONS INC
ACVA Guru Analysis
ACVA Fundamental Analysis
More Information on Kenneth Fisher
Kenneth Fisher Portfolio
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Detailed Fundamental Analysis - ACVA

Below is Validea's guru fundamental report for ACV AUCTIONS INC (ACVA). Of the 22 guru strategies we follow, ACVA rates highest using our Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
ACV AUCTIONS INC (ACVA) is a mid-cap growth stock in the Retail (Specialty) industry. The rating using this strategy is 40% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ACV AUCTIONS INC
ACVA Guru Analysis
ACVA Fundamental Analysis
More Information on Kenneth Fisher
Kenneth Fisher Portfolio
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
Additional Research Links
Top S&P 500 Stocks
Top Russell 2000 Stocks
Dividend Growth Stocks
High Free Cash Flow Yield Stocks
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Below is Validea's guru fundamental report for ACV AUCTIONS INC (ACVA). Of the 22 guru strategies we follow, ACVA rates highest using our Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
ACV AUCTIONS INC (ACVA) is a mid-cap value stock in the Retail (Specialty) industry. The rating using this strategy is 40% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ACV AUCTIONS INC
ACVA Guru Analysis
ACVA Fundamental Analysis
More Information on Kenneth Fisher
Kenneth Fisher Portfolio
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
Additional Research Links
Top S&P 500 Stocks
Top Russell 2000 Stocks
Dividend Growth Stocks
High Free Cash Flow Yield Stocks
Low Volatility Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ACVA Factor-Based Stock Analysis

Shares of ACV Auctions (NASDAQ: ACVA) soared Thursday after the online wholesale vehicle marketplace operator posted strong results for its fourth quarter despite challenging conditions in the used car industry. Investors also liked the company's guidance.
As a result, ACV stock finished the session up by 17.2%.
ACV revs higher
Revenue in the quarter jumped 21% to $118.4 million, which matched the consensus estimate. Management said the company continued to gain market share even as dealer inventories were low, and it saw promising trends in new vehicle production and retail sales going forward.
Revenues from the company's core marketplace and service segment rose 23% to $104 million even as marketplace gross merchandise volume (GMV) was up just 6% to $1.8 billion and marketplace units sold rose 15% to 143,999. That reflects both that wholesale prices fell and the company's take rate moved higher, which supported its expanding margins.
On the bottom line, ACV's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss narrowed from $13 million in Q4 2022 to $5 million, and its generally accepted accounting principles (GAAP) loss per share also improved from $0.16 in the prior-year period to $0.14, which beat estimates by a penny.
"Our strong market position and competitive moat resulted in continued market share gains and accelerated revenue growth in the quarter," said CEO George Chamoun.
What's next for ACV
Chamoun also expressed optimism for 2024. "We expect market headwinds to ease resulting in modest growth in dealer wholesale industry volumes," he said.
For 2024, ACV expects revenue growth to accelerate to between 27% and 30% from just 14% in 2023, giving it a top line of between $610 million and $625 million. That range was well ahead of analysts' consensus estimate of $581.1 million. Management also expects the company to turn profitable this year with a slight profit on an adjusted basis.
With accelerating revenue growth and an increasing market share, it's clear that ACV Auctions is moving in the right direction. It's not surprising that investors rewarded it for its latest round of results.
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Why ACV Auctions Stock Popped Today

ACV Auctions Inc. (ACVA) reported $118.38 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 20.8%. EPS of -$0.04 for the same period compares to -$0.16 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $117.62 million, representing a surprise of +0.64%. The company has not delivered EPS surprise, with the consensus EPS estimate being -$0.04.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how ACV Auctions Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Marketplace Units: 143,999 versus 144,222 estimated by three analysts on average.
Marketplace GMV: $1.8 billion versus the two-analyst average estimate of $2.01 billion.
Revenue- Customer assurance revenue: $14.61 million versus $13.86 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.5% change.
Revenue- Marketplace and service revenue: $103.77 million versus the two-analyst average estimate of $103.47 million. The reported number represents a year-over-year change of +22.6%.
View all Key Company Metrics for ACV Auctions Inc. here>>>
Shares of ACV Auctions Inc. have returned -0.1% over the past month versus the Zacks S&P 500 composite's +3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ACV Auctions Inc. (ACVA) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

ACV Auctions Inc. (ACVA) came out with a quarterly loss of $0.04 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.16 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this company would post a loss of $0.07 per share when it actually produced a loss of $0.02, delivering a surprise of 71.43%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
ACV Auctions Inc., which belongs to the Zacks Internet - Commerce industry, posted revenues of $118.38 million for the quarter ended December 2023, surpassing the Zacks Consensus Estimate by 0.64%. This compares to year-ago revenues of $97.97 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ACV Auctions Inc. Shares have lost about 7.3% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for ACV Auctions Inc.
While ACV Auctions Inc. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ACV Auctions Inc. Unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.04 on $140.4 million in revenues for the coming quarter and $0.13 on $573.04 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, eBay (EBAY), has yet to report results for the quarter ended December 2023. The results are expected to be released on February 27.
This e-commerce company is expected to post quarterly earnings of $1.03 per share in its upcoming report, which represents a year-over-year change of -3.7%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level.
eBay's revenues are expected to be $2.51 billion, down 0.2% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ACV Auctions Inc. (ACVA) Reports Q4 Loss, Tops Revenue Estimates

In trading on Friday, shares of ACV Auctions Inc (Symbol: ACVA) crossed below their 200 day moving average of $15.21, changing hands as low as $15.08 per share. ACV Auctions Inc shares are currently trading down about 2.5% on the day. The chart below shows the one year performance of ACVA shares, versus its 200 day moving average:
Looking at the chart above, ACVA's low point in its 52 week range is $7.80 per share, with $18.68 as the 52 week high point — that compares with a last trade of $15.00.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

	Change	Change by industry	Min.	Max.	Volume
Yesterday	2.86%	17.20%	$15.08000	$15.80000	34.98M
Week	2.86%	20.66%	$15.08000	$15.80000	34.98M
Month	2.86%	18.15%	$15.08000	$15.80000	34.98M
3 Months	-26.31%	11.15%	$12.77000	$22.09000	979.87M
6 Months	-10.37%	16.18%	$12.77000	$23.45600	2.11B
Year	-12.90%	17.33%	$12.77000	$23.45600	3.73B
3 years	11.49%	90.88%	$6.10000	$23.45600	8.93B
5 years	—	145.10%	—	—	—
All time	-46.27%	86.87%	$6.10000	$37.76990	13.56B

	ACVA	By industry
Yesterday	27.18%	0.94%
Week	3.04%	4.09%
Month	9.41%	14.38%
3 Months	18.58%	24.52%
6 Months	34.72%	32.38%
Year	47.33%	43.09%
3 years	100.73%	106.12%
5 years	129.16%	132.31%
All time	—	—

ACV Auctions Inc.

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