So it's interesting. The bull thesis for this company is pretty much the exact opposite of the bull thesis for a company I own and a company that is on the bull list, Boyd Group Services.
Both are heavy reliant on insurers, but Copart and Boyd Group are effectively fighting over the same damaged car. Only one of them can "win" the asset.
Boyd wants the damage to be expensive and complex, but not so expensive that the insurance company writes it off. They need the car to be repairable. Copart wants the repair cost to cross that threshold. As soon as the repair bill exceeds roughly 70–80% of the car's cash value, the insurance company declares it a "Total Loss."
Now the even more interesting part is Copart reported smaller writeoffs by insurers, which spooked the market, whereas Boyd is reporting a recovery in same store sales and is mentioning that total loss claims are coming down.
Both of these companies are outstanding. However, I tend to lean more towards Boyd as that seems to be where the momentum is leading. At some point, this may reverse. It did in 2023, which is why you seen Copart do so well and Boyd struggle so much. They truly are direct opposites.