Top Catalysts for this Week’s Trading

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Naturally, it will likely take the spotlight along with corporate earnings reports. Economists expect the personal consumption expenditures price index (the Fed Reserve’s preferred inflation gauge) to accelerate to 2.6% on an annual basis when the new reading is out on Friday. Rising energy prices are expected to play a role in boosting the pace of price gains. (Source: Bloomberg) If this projection ends up correct, Fed officials probably will continue its message that rate cuts are unlikely to happen anytime soon. Inflation needs to start coming down in a convincing way before rate cuts are back on the table. Upcoming earnings reports: This week will be busy with earnings reports. Tesla will report its results on Tuesday with great fanfare because of its soaring inventory and its recent announcement of laying off 10% of its workforce. Meta Platforms, Microsoft, Google and Intel will also report their results. These Big Tech companies have been a major leader in the market, so their earnings growth will be critical to decide whether the market can bounce back from its recent pullback. A clue from the Asian market: Hong Kong shares in the benchmark soared by more than 2%. It hinted that traders feel more secure after the Iran-Israel conflict seemed to avoid an escalation. - “We are seeing a relief rally underway this morning as geopolitical risks subside,” said Kyle Rodda, a senior market analyst at Capital.com in Melbourne. “The move basically squares the ledger now and allows the markets to go back to focus on macroeconomic and corporate fundamentals." So, we might see some recovery today if the Asian market is any indicator. Stay tuned. The #1 Cash-Flow Tech Stock To Own Right Now Today’s Pick: Copart, Inc. ([CPRT]( Copart.com is a true American success story. Founder Willis J. Johnson started with just a single salvage yard in California and quickly saw the future of the internet by launching Copart.com in 1996. It became the first online-only auto auction in 2003.  Willis Johnson now owns a business empire that spans four continents and nine countries. Now, here are two words to describe Copart: Spectacularly profitable. Listen, their profit margin posted 33.14% for the last 12 months, which is nearly 50% higher than their auction and valuation industry peers! (Source: MacroTrends) As a result, the company is swimming in cash. Take a look at the quick accumulation of cash on their balance sheet in the three years: - June 2019: $186 million - June 2020: $477 million - March 2021: $1.05 billion - Current (10/5): $2.36 billion The cash diet has left their balance sheet exceptionally healthy, with a current ratio of 5.74 and a debt/equity ratio of just 2.06. What is its business? When insurance decides to auction off a totaled car, Copart is the popular platform that offers a marketplace for it. Cars get moved to massive lots that are located outside of urban cities and get auctioned off. So, who would want to buy a totaled car? People often buy cars, dismantle parts, sell all the auto parts, and just scrap the remaining car. And there are some repair shops who could fix these cars and sell them for a profit. And Copart takes about 10% commission from these sales. Yes, it is far from a sexy business. I mean, they sell damaged cars! But you can’t argue how profitable Copart has been. (Source: copart.com) Copart has invested a large share of its cash flows into overseas expansion. According to CEO John Liaw: “The first priority is capacity investment, as you mentioned, as we've talked about, and it has been the trend over the past number of years, all the way back to '16.” What’s more, Copart was listed on 2020 Fortune Future 50 -- which is a list of companies with “best long-term growth potential.” Here was what Fortune wrote about Copart: - “While auto salvage might seem like one of the most low-tech businesses imaginable, Copart, which began as a single salvage yard, has grown into a digital force by connecting would-be buyers with companies looking to sell damaged vehicles online. The company, which sells more than 2 million vehicles a year, has experienced rapid growth as cars have become more technically complex, and therefore less economically viable to repair.” It is currently a Fortune 1000 company, but there’s a plenty of growth ahead to reach Fortune 50. Bottom line: With its financial fortress, the company is well-positioned for long-term growth. Plus, its business is “ugly” and unattractive to many smart entrepreneurs. With its network effect of buyers and sellers, the company is positioned to grow for a decade (and longer). Buy and hold this stock.  [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](