I’ve noticed that as the market turns its attention to stocks tied to artificial intelligence (AI), semiconductors, data centers, quantum computing, and space, many magnificent S&P 500 stocks have been cast aside.
While there is certainly immense potential in these booming industries, I believe this outsize attention has left opportunities in the more “boring is beautiful” sectors, like industrials
Today, I will look at three forgotten industrial stocks that not only lead their niches, but also trade at once-in-a-decade valuations, making them intriguing buy-now candidates. 1. Copart: 42% below 52-week high Copart (NASDAQ: CPRT) is the leading online auction platform for totaled vehicles and owns 250 salvage yards across North America and 11 countries in total. The typical transaction involves auto insurers selling (usually) totaled vehicles at auction to dismantlers, exporters, recyclers, and many other customers — including the public.
It may sound like a fairly unassuming business, but Copart stock has been a 185-bagger since 1994, highlighting the durability of its operations. The company’s salvage yards benefit from “not-in-my-backyard” sentiment, meaning that communities generally put up a lot of resistance toward welcoming a new junkyard in town. This NIMBY-ism helps lock in Copart’s status as the industry leader and provides Copart with a wide moat.