Stocks slumped last week as investors winced over the potential for oil-shock inflation and concerns that strong jobs data could lead to higher interest rates.

The Dow Jones Industrial Average slipped 0.32 percent, while the Standard & Poor’s 500 Index dropped 2.59 percent. The Nasdaq Composite Index fell 4.68 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 1.41 percent.

Under Pressure

June kicked off with modest gains as a tech rally overcame rising oil prices. On Monday, all 3 averages logged new all-time intraday highs and record closes. The S&P 500 recorded its first close above 7,600 on Tuesday, while the Dow advanced nearly a half percentage point.

But stocks fell midweek as oil prices rose further. The S&P 500 broke its nine-day winning streak as investors fretted about the inflationary effects of the Middle East. By Wednesday’s close, the S&P and Dow Industrials had given back all the gains from the start of the week.

On Friday, a stronger-than-expected jobs report prompted worries that the Fed may have to adjust short-term interest rates. Markets fell broadly, with the S&P down over 2½ percent for the session and the Nasdaq down over 4 percent.

May Jobs

The federal government’s nonfarm payrolls report was out on Friday. The economy added 172,000 jobs in May, more than double what economists expected.

Employers were playing catch-up after pausing hiring amid last year’s trade policy uncertainties and federal government budget cuts. Unemployment remained at 4.3 percent for the month. ADP’s report on private-sector hiring, released Wednesday, tracked similarly to the federal data.

This Week: Key Economic Data

Tuesday: NFIB Small Business Optimism Index. U.S. Trade Balance. Existing Home Sales. Wholesale Inventories.

Wednesday: Consumer Price Index (CPI). Federal Budget.

Thursday: Weekly Jobless Claims. Producer Price Index (PPI).

Friday: Consumer Sentiment.

Source: Investor’s Business Daily – Econoday economic calendar: June 5, 2026.

The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.

This Week: Companies Reporting Earnings

Wednesday:  Oracle Corporation (ORCL) 

Thursday: Adobe Inc. (ADBE)

Source: Zacks, June 5, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.

The post Under Pressure – Weekly Market Update for June 8, 2026 appeared first on Hixon Zuercher Capital Management.

In this month’s market update video, Tony Hixon & Jordan Shaw break down the key financial insights to note from May, highlighting some important market trends and investment takeaways. Then, they’ll shift focus to what’s ahead for the current month of June, offering a forward-looking economic outlook.

Stay informed on recent stock movements and get market predictions for the month ahead!

The post June 2026 Market Update Video appeared first on Hixon Zuercher Capital Management.

The post-Memorial Day holiday trading week was short but potent as stocks delivered more record gains while confidence grew that a peace deal would materialize.

The Standard & Poor’s 500 Index advanced 1.43 percent, while the Nasdaq Composite Index gained 2.39 percent. The Dow Jones Industrial Average climbed 0.90 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.99 percent.

Ninth Straight for S&P

Stocks got off to a good start as the chipmaker-led rally continued to support the broader market, while the White House reported diplomatic progress on a Middle East peace deal.

Leadership shifted a bit midweek, with the Dow rising modestly to a new record close as oil prices fell.

The S&P and Nasdaq opened higher Thursday on upbeat economic news. Both posted solid gains, while the Dow Industrials went sideways.

Stocks wrapped up the week and the month on positive notes. Sliding oil prices and technology gains helped push all three averages to record intraday and closing highs, including the Dow cracking the 51,000 mark for the first time.

Economic Updates

It was a mixed bag of economic news last week, with four key April data points released on Thursday.

The Fed’s preferred inflation measure came in cooler than expected. The personal-consumption expenditure (PCE) index rose 0.4 percent in April, less than the 0.5 percent expected. Annual PCE rose 3.8 percent.

The Gross Domestic Product report showed the economy grew more slowly in Q1 than initially estimated, with the estimate revised down to 1.6 percent annualized growth.

In a good sign for manufacturing, durable goods orders rose 7.9 percent in April, double the expected pace and the biggest increase in almost a year. The main reason? Civilian aircraft orders soared 166 percent after China ordered 200 planes following a recent U.S.-China presidential summit.

Homebuyers bought 6.2 percent fewer new homes in April over the prior month. But investors focused on the fact that homebuyers bought 8.9 percent and 7.4 percent more new homes in February and March, respectively, over the prior month.

This Week: Key Economic Data

Monday: ISM Manufacturing. Construction Spending. Auto Sales. Minneapolis Fed President Neel Kashkari speaks in South Korea.

Tuesday: Job Openings. Cleveland Fed President Beth Hammack speaks.

Wednesday: ADP Employment Report (private sector hiring). Factory Orders. ISM Services. Fed Beige Book. Fed governor Michael Barr speaks.

Thursday: Weekly Jobless Claims. Productivity. Richmond Fed President Tom Barkin speaks.

Friday: Federal Employment Report. Consumer Credit.

Source: Investors Business Daily – Econoday economic calendar; May 29, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.

This Week: Companies Reporting Earnings

Monday: Hewlett Packard Enterprise Company (HPE)

Tuesday: Palo Alto Networks, Inc. (PANW)

Wednesday: Broadcom Inc. (AVGO), CrowdStrike (CRWD), Medtronic (MDT)

Thursday: Ciena Corporation (CIEN)

Source: Zacks, May 29, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.

The post Ninth Straight for S&P – Weekly Market Update for June 1, 2026 appeared first on Hixon Zuercher Capital Management.

Stocks bounced back last week as enthusiasm for the AI trade continued and rumors of a Middle East peace agreement bolstered investor optimism.

The Standard & Poor’s 500 Index advanced 0.88 percent, while the Nasdaq Composite Index edged ahead 0.45 percent. The Dow Jones Industrial Average climbed 2.13 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 2.16 percent.

S&P’s 8th Winning Week

Stocks sputtered out of the gate as a capacity issue amid soaring demand in the memory chip space put pressure on those stocks, along with the AI trade and tech more broadly.

Then markets took a leg up midweek as investor optimism returned for a Middle East peace deal; oil prices and Treasury yields fell. Investors also looked ahead to a quarterly earnings report from one of the mega-cap AI chipmakers. The Dow hit a fresh record close.

Then, on Friday, markets rallied once again as investors continued to hold out hope that a Middle East peace deal would materialize.

Kevin Warsh was sworn in as the new Fed chair, while investor enthusiasm over the AI trade and other tech stocks added to the market’s ebullient sentiment. The Dow closed at another record high, while the S&P 500 finished its eighth consecutive week in the green, its longest weekly winning streak since 2023.

Fed Meeting Minutes

The Federal Reserve released minutes from its April Federal Open Market Committee meeting, Jerome Powell’s last FOMC meeting as Fed Chair.

The minutes revealed that if the Fed were to adjust rates sometime during the remainder of this year, it might be a rate hike rather than a rate cut.

This Week: Key Economic Data

Tuesday: Case-Shiller Home Price Index. Consumer Confidence.

Thursday: Weekly Jobless Claims. New Home Sales. Durable Goods.

Friday: Gross Domestic Product (GDP). Personal Consumption & Expenditures (PCE) Index. Trade Balance in Goods. Retail & Wholesale Inventories.

Source: Investors Business Daily – Econoday economic calendar: May 22, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.

This Week: Companies Reporting Earnings

Wednesday: Marvell Technology, Inc. (MRVL), Salesforce, Inc. (CRM), Synopsys, Inc. (SNPS)

Thursday: Costco Wholesale Corporation (COST), Dell Technologies Inc. (DELL)

Source: Zacks, May 22, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.

The post S&P’s 8th Winning Week – Weekly Market Update for May 26, 2026 appeared first on Hixon Zuercher Capital Management.

The Dow Jones Industrial Average…  

The Nasdaq…  

The Russell 1000 Value… 

You’ve heard of them. You probably follow them.

You may even compare your portfolio to them from time to time. 

But if we’re being honest, most people don’t really understand what these benchmarks are measuring. 

Instead, many default to one simple idea: “I should always be outperforming.” 

That sounds logical. It also happens to be a really dangerous assumption. 

How Indices Are Built 

Not all benchmarks are created the same, and that’s where the disconnect starts. 

Indices are built in different ways: cap-weighted, equal-weighted, and price-weighted. Those aren’t just technical distinctions. They materially change what you’re measuring yourself against. 

A market-cap weighted index like the S&P 500 gives more influence to larger companies. The bigger the company, the more it drives the return. That makes intuitive sense… until a handful of companies become so large that they start to dominate everything. Concentration risk quietly builds, but most people never notice it. 

Equal-weighted indices flip that. Every company gets the same allocation, which reduces concentration but introduces a different kind of bias. You end up with more exposure to smaller companies and more turnover from rebalancing. 

Then there’s price-weighted indices like the Dow. These are honestly a bit outdated.

A higher stock price gets more weight, regardless of how big the company actually is. It’s still widely quoted, but not many professionals view it as economically meaningful. 

The Concentration Problem 

Let’s focus on the S&P 500, because this is where the issue becomes most obvious. 

The index is as concentrated today as it’s ever been. As of May 18, 2026, the top ten holdings make up roughly 38% of the entire index. Ten companies driving nearly forty percent of “the market.” 

That’s not diversified. That’s concentrated. 

NVDA alone is about 7.4%. GOOGL is around 6.7%. AAPL sits at roughly 6.1%. And when you zoom out further, technology now represents over 36% of the entire index. Semiconductors are right at the center of that. 

So when someone says they’re diversified because they own the S&P 500… it’s worth taking a second look at what they actually own. 

The Active Manager’s Dilemma 

Now think about this from an active manager’s perspective. 

Your job is to manage risk. You look at a sector like semiconductors and see high valuations, cyclicality, geopolitical supply chain exposure, and a significant amount of concentration tied to a single theme. 

So, you underweight it. 

That’s a rational decision. It’s defensible. It’s what you’re supposed to do. 

And then the sector outperforms by 20%. 

Just like that, you’re behind. 

Even a modest 5% underweight in a sector that outperforms by 20% can cost roughly 1% of relative performance. That’s from one decision, before anything else is taken into consideration. 

This is where things start to break down. 

The prudent, risk-managed decision… ends up hurting relative performance. 

That’s the paradox. The “right” decision and the “benchmark-safe” decision are no longer the same thing. And they’re diverging more than ever. 

Sometimes a Benchmark Does Not Fit the Strategy 

You can also see the same issue show up in value benchmarks like the Russell 1000 Value. 

Micron and Intel are two of the larger holdings in that index right now, and both have had significant runs this year. Micron is up well over 100% year to date. Intel has also had a massive rebound. 

If you’re running a value-oriented dividend growth strategy, you almost certainly don’t own either. And you shouldn’t. 

Micron barely pays a dividend. Intel eliminated theirs during restructuring. They don’t fit the mandate. 

But if they’re in your benchmark and performing well, you’re going to lag. Not because you made a bad decision… but because the benchmark doesn’t align with your strategy. 

That’s not an execution issue. That’s structural. 

The takeaway is simple: the benchmark itself has become a source of risk. 

Which brings us to a bigger point. The only benchmark that actually matters is whether your portfolio is doing what it’s supposed to do. 

We need to be asking ourselves: Can my portfolio achieve my long-term return target? Can it support my financial plan? Can it hold up through a full market cycle? That’s the real comparison. Not whether you beat an index in a given year or even multiple years. 

At our firm, we anchor everything to a client’s required rate of return: the return their plan actually needs to work over time. That’s the benchmark that matters most. 

Indices aren’t directly investable. They don’t account for fees. They don’t account for taxes. They don’t reflect how portfolios are actually managed in the real world. You don’t invest in an index. You invest in a portfolio. Those are not the same thing. 

Performance Matters

Now, that doesn’t mean performance doesn’t matter. It absolutely does. 

As asset managers, we analyze performance constantly. There are always reasons a portfolio outperforms or underperforms, and understanding those drivers is critical. That’s where attribution comes in. It explains what happened and, more importantly, why. It forces discipline and keeps us honest. 

But for clients, if the entire conversation is just, “Did my portfolio beat the S&P 500?” They’re missing the point completely. 

Because outperforming a benchmark doesn’t guarantee success. And underperforming doesn’t necessarily mean failure. 

So, the next time you hear someone say, “I just want to beat the market,” it’s worth asking a simple question. Why? 

Because if you don’t know what you’re actually trying to accomplish, you’ll never know if you got there. 

What does success look like for your portfolio? 

Disclaimer: The views expressed in this blog are solely those of Austin Wilson and do not necessarily reflect the views of Hixon Zuercher Capital Management. Hixon Zuercher Capital Management and its clients may hold positions in securities mentioned. Nothing in this blog constitutes investment advice or a recommendation to buy or sell any security. All investments involve risk, including possible loss of principal. Please consult your financial advisor to ensure any investment aligns with your objectives and risk tolerance. Indices are unmanaged and not directly investable. Any investment in securities, funds, or other financial instruments will involve costs and fees, including but not limited to fund expense ratios, management fees, and transaction costs. This content is provided for informational purposes only and is not intended to comply with the requirements of the Investment Advisers Act of 1940 or any other applicable securities laws. Past performance is not indicative of future results.

Published by Austin Wilson, Inspired Investing, on June 22, 2026

The post The Anatomy of Investment Benchmarks  appeared first on Hixon Zuercher Capital Management.

Stocks were mixed last week as investors fretted over hot inflation reports, which offset the move in chipmaker stocks.

The Standard & Poor’s 500 Index rose 0.13 percent, while the Nasdaq Composite Index edged down 0.08 percent. The Dow Jones Industrial Average lost 0.17 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, declined 1.77 percent.

Volatile Week

Stocks ticked up to start the week, helping the S&P 500 close above 7400 for the first time. The Nasdaq also closed at a new high as chipmaker stocks continued to lead the tech sector.

Markets opened lower on Tuesday after the Consumer Price Index (CPI) report came in hotter than expected. Stocks pared the losses by the close, with the Dow Industrials managing to notch a slight gain.

The rally continued, with the S&P and Nasdaq hitting new intraday and closing records over the next two trading days. On Thursday, a strong Q1 report from a megacap tech company helped pace gains while investors kept one eye on the ongoing U.S.-China meetings. The S&P 500 closed over 7,500 for the first time, while the Dow reclaimed the 50,000 level.

Stocks were under pressure from the opening bell on Friday. Treasury yields rose as the three-day summit between U.S. and Chinese leaders came to a close. Investors seemed disappointed that there were no major agreements in the Middle East conflict.

Inflation in Focus

Both retail and wholesale inflation rose faster than expected in April, heavily influenced by higher energy prices.

The CPI increased 3.8 percent year over year in April, up from 3.3 percent in March. Fuel oil alone climbed 54 percent year over year, while gasoline jumped 28 percent. In fact, over 40 percent of the 0.6 percent month-over-month gain was driven by energy inflation.

Inflation also showed up in wholesale prices. The Producer Price Index rose 6 percent over the prior 12 months in April, also a 3-year high. Month over month, PPI rose 1.4 percent (a 4-year high) versus the 0.5 percent increase expected.

This Week: Key Economic Data

Tuesday: Pending Home Sales. Philadelphia Fed President Anna Paulson speaks.

Wednesday: Minutes from Fed’s May FOMC Meeting.

Thursday: Weekly Jobless Claims. Housing Starts. Building Permits. Purchasing Managers Index—Services. Purchasing Managers Index—Manufacturing.

Friday: Consumer Sentiment. Leading Economic Indicators.

Source: Investors Business Daily – Econoday economic calendar; May 15, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.

This Week: Companies Reporting Earnings

Tuesday: The Home Depot, Inc. (HD)

Wednesday: NVIDIA Corporation (NVDA), Analog Devices, Inc. (ADI), The TJX Companies, Inc. (TJX), Lowe’s Companies, Inc. (LOW), Intuit Inc. (INTU)

Thursday: Walmart Inc. (WMT), Deere & Company (DE)

Source: Zacks, May 15, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.

The post Volatile Week – Weekly Market Update for May 18, 2026 appeared first on Hixon Zuercher Capital Management.

Stocks rose last week as peace talks picked up while investors cheered better-than-expected economic news and Q1 corporate results.

The Standard & Poor’s 500 Index advanced 2.33 percent, while the Nasdaq Composite Index rose 4.51 percent. The Dow Jones Industrial Average edged up 0.22 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 1.24 percent.

Sixth Week of Gains

Stocks stumbled at the start of the week as stalled peace talks and escalating tensions in the Middle East weighed on sentiment.

The gloom didn’t last long. Markets opened higher Tuesday morning as investors reacted positively to solid Q1 corporate earnings results and falling oil prices. The rally extended through Wednesday after better-than-expected earnings results from a couple of chipmakers lifted the entire sector and led the broader averages higher. The S&P 500 and Nasdaq hit record intraday and closing highs both days, while the S&P closed above 7,300 for the first time.

Stocks took a breather on Thursday as investors assessed the latest developments in the Middle East. Markets then opened higher on Friday on news of better-than-expected job growth in April, fueling a relief rally from investors who were pleasantly surprised that the Middle East had not impacted hiring. A major chipmaker deal announcement extended the week’s chip-stock rally, further lifting the S&P and Nasdaq to new highs and a sixth consecutive week of gains.

Jobs Report Surprise

Employers added 115,000 jobs in April, versus the 55,000 economists expected. Jobs grew the most in the healthcare, retail, and leisure & hospitality sectors. Another good sign: unemployment held steady at 4.3 percent last month.

In other economic news, the new home sales data released last week showed sales for both February and March exceeded expectations. In March, 682,000 newly constructed homes were sold, up 7.4 percent over the prior month, while February new home sales jumped 8.9 percent over February.

This Week: Key Economic Data

Monday:  Existing Home Sales.

Tuesday: NFIB Small Business Optimism Index. Consumer Price Index (CPI). Chicago Fed President Austan Goolsbee speaks. Monthly Federal Budget.

Wednesday: Producer Price Index (PPI). Boston Fed President Susan Collins speaks.

Thursday: Retail Sales. Weekly Jobless Claims. Import Price Index. Business Inventories. Cleveland Fed President Beth Hammack and Fed Governor Michael Barr speak.

Friday: Industrial Production. Capacity Utilization. Home Builder Confidence Index.

Source: Investors Business Daily – Econoday economic calendar: May 8, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.

This Week: Companies Reporting Earnings

Monday: Constellation Energy Corporation (CEG)

Wednesday: Cisco Systems, Inc. (CSCO)

Thursday: Applied Materials, Inc. (AMAT), Brookfield Corporation (BN)

Source: Zacks, May 8, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.

The post Sixth Week of Gains – Weekly Market Update for May 11, 2026 appeared first on Hixon Zuercher Capital Management.

Not the flashy stuff. 

Not the “next big thing.” 

Just boring, behind‑the‑scenes businesses quietly doing their job exceptionally well. 

And one of those companies is Copart. 

Chances are, you’ve never woken up with excitement to research salvage vehicle auctions. Fair enough… It’s not exactly cocktail‑party material.  

But history is full of examples where the unsexy businesses ended up being phenomenal investments. 

Copart is a mid-cap company with a market cap of roughly $32 billion. Headquartered in Dallas, Texas, it employs around 11,600 people. Their business is pretty straightforward: They help insurance companies and other vehicle suppliers process and sell salvaged vehicles through auctions. 

Think totaled cars. Flood damage. Vehicles that are no longer economical to repair. 

Those cars still have value. Someone just has to connect them to the right buyer at the right price. 

That’s Copart’s world. 

Most of those vehicles are purchased by licensed dismantlers, rebuilders, exporters, and used car dealers around the globe. Copart operates across the U.S., Canada, U.K., Brazil, Germany, Middle East, and parts of Europe, though the U.S. still accounts for more than 80% of revenue. 

At its core, Copart is an infrastructure company for the automotive ecosystem.  

Insurance companies rely on them. Repair shops rely on them. Parts recyclers rely on them.  

Copart sits quietly in the middle, facilitating an enormous volume of transactions without much fanfare. 

Years ago, these auctions were held in person. People showed up. They raised paddles. Geography mattered. 

That eventually all changed. 

Copart moved the business online through its proprietary Virtual Bidding Third Generation platform, or VB3. That shift removed geographic barriers entirely. Now, bidders from around the world can participate instantly, which dramatically expands the bidder pool and improves pricing dynamics. 

On top of that, Copart layered in towing, storage, logistics, and other ancillary services. It’s no longer just an auction platform, but a full-service ecosystem. 

Here’s where it gets interesting. 

Copart is not marketed as an “AI company.” It doesn’t get lumped in with the flashy software names. But behind the scenes, they’re already deploying artificial intelligence in very meaningful ways. 

The company is using AI for business analytics, document processing, dispatch operations, customer support, and internal productivity. Their engineering teams are increasingly integrating AI tools into day-to-day operations, and several purpose-built systems are already in production. 

Co.ai uses computer vision and machine learning to help assess total-loss decisions. IntelliSeller helps optimize auction decisions. Their Title Express platform uses large language models to speed up title procurement, which is no small task in this business. AI also helps power buyer recommendations and auction search results. 

This isn’t theoretical.  

Management has talked openly about real productivity gains and plans to continue expanding AI deployment where it genuinely adds value. 

Another quiet advantage is how resilient the business model is. 

Tariffs and trade tensions have been a huge topic in the automotive world. Imported parts get more expensive. Repair costs rise. Insurance companies feel the pressure. 

Copart is largely insulated from those dynamics. 

They aren’t dependent on global supply chains for parts, because their inventory already exists right here at home. Damaged vehicles aren’t going away. In fact, as cars get more expensive and stay on the road longer, the dynamics arguably tilt further in their favor. 

The average vehicle age in the U.S. has climbed to a record 12.8 years. Meanwhile, average new-car prices are approaching $49,000. 

That combination makes repairs more expensive and total losses more common. 

And that environment feeds directly into Copart’s system. 

Historically, the stock has been exceptional. Since its IPO in 1994, Copart shares have risen more than 22,000% (roughly a 220x return) compared to about 28x for the S&P 500 over the same period. 

In my opinion, that kind of track record earns some respect. 

That said, this isn’t a victory lap. 

Growth has slowed. Insurance volumes have softened. Copart has been more reluctant than competitors to aggressively cut fees to protect market share, while others have been willing to play offense. Elevated uninsured rates and insurers diversifying vendors have added pressure as well. 

So, this could be a turning‑point period for the company. 

Still, the fundamentals are hard to ignore.  

Free cash flow remains strong. Returns on invested capital consistently exceed 15 percent. The balance sheet carries minimal debt. This is a conservatively run business that tends to think long‑term. 

Leadership matters too. 

Jay Adair joined the company in 1989 and now serves as Co-Chairman. He owns roughly $884 million worth of Copart stock, which says a lot about where his incentives lie. CEO Jeff Liaw assumed sole leadership in 2024 and owns approximately $2.65 million in shares. Not massive, but not nothing either. 

Today, the stock trades at roughly a 33% discount to its own five-year average price-to-earnings multiple. If the business stabilizes and sentiment improves, a move back into the low-to-mid $40s doesn’t seem unreasonable. 

Is it flashy? No. 

Is it easy to explain at dinner? Probably not. 

But great investments do not need to be exciting. They need to work. 

Sometimes the best opportunities hide in plain sight, doing the unglamorous work nobody else wants to talk about. 

What’s one under‑the‑radar company you like to invest in? 

Disclaimer: The views expressed in this blog are solely those of Austin Wilson and do not necessarily reflect the views of Hixon Zuercher Capital Management. Hixon Zuercher Capital Management and its clients may hold positions in securities mentioned. Nothing in this blog constitutes investment advice or a recommendation to buy or sell any security. All investments involve risk, including possible loss of principal. Please consult your financial advisor to ensure any investment aligns with your objectives and risk tolerance. Indices are unmanaged and not directly investable. Any investment in securities, funds, or other financial instruments will involve costs and fees, including but not limited to fund expense ratios, management fees, and transaction costs. This content is provided for informational purposes only and is not intended to comply with the requirements of the Investment Advisers Act of 1940 or any other applicable securities laws. Past performance is not indicative of future results.

The post The Case for Copart appeared first on Hixon Zuercher Capital Management.

In this month’s market update video, ​Austin Wilson & Josh Robb break down the key financial insights to note from April, highlighting some important market trends and investment takeaways. Then, they’ll shift focus to what’s ahead for the current month of May, offering a forward-looking economic outlook.

Stay informed on recent stock movements and get market predictions for the month ahead!

The post May 2026 Market Update Video appeared first on Hixon Zuercher Capital Management.

Stocks advanced last week as investors moved past stalled progress in Middle East peace talks and refocused on corporate earnings.

The Standard & Poor’s 500 Index rose 0.91 percent, while the Nasdaq Composite Index climbed 1.12 percent. The Dow Jones Industrial Average moved up 0.55 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 0.58 percent.

Momentum Shift

Markets were under pressure early in the week as investors focused on stalled peace talks and rising oil prices.

But midweek, momentum shifted. First, the Fed announced it was holding interest rates steady, as expected, but there was some dissent over the decision. Then investors’ attention focused on Wednesday’s closing bell, when several big-name companies reported Q1 results.

Investors mostly liked what they heard, and stock prices rose, ending April on a high note. The Dow led the broad market rally while the S&P 500 and Nasdaq each logged their best monthly performances in 5 years.

Stocks rose again on Friday as oil prices fell. Investors applauded Q1 results from another high-profile megacap tech company, which helped the S&P notch another all-time intraday high.

Fed News

The Federal Reserve voted 8-4 to keep interest rates steady at the April meeting, leaving the Federal Funds Rate at a 3.5 to 3.75 percent target range. Market observers were quick to point out that the 8-4 decision was the Federal Open Market Committee’s most divided vote since 1992.

At the last FOMC press conference of his eight-year tenure, Fed Chair Powell announced he would stay on as a Fed governor after his term as Chair expires on May 15. Earlier that day, the Senate Banking Committee confirmed Kevin Warsh as the next Fed Chair, setting up a final confirmation vote in the Senate.

This Week: Key Economic Data

Monday: New York Fed President John Williams speaks.

Tuesday: Trade Balance. Job Openings. New Home Sales (Feb* + March). ISM Services. Federal Reserve speeches: Michelle Bowman, Michael Barr.

Wednesday: ADP Employment Report. Chicago Fed President Austan Goolsbee speaks.

Thursday: Weekly Jobless Claims. Productivity. Construction Spending (Feb* + March). Consumer Credit. Federal Reserve speeches: Neel Kashkari, John Williams.

Friday: Fed governor Lisa Cook speaks. U.S. Employment Report. Wholesale Inventories. Consumer Sentiment. Fed panel: Chicago Fed President Austan Goolsbee, San Francisco Fed President Mary Daly, Fed governors Michelle Bowman and Christopher Waller.

* Indicates federal data release delayed by government shutdown

Source: Investors Business Daily – Econoday economic calendar; May 1, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.

This Week: Companies Reporting Earnings

Monday: Palantir Technologies Inc. (PLTR), Vertex Pharmaceuticals Incorporated (VRTX)

Tuesday: Advanced Micro Devices, Inc. (AMD), Arista Networks, Inc. (ANET), Pfizer Inc. (PFE)

Wednesday: The Walt Disney Company (DIS), Uber Technologies, Inc. (UBER), AppLovin Corporation (APP), CVS Health Corporation (CVS)

Thursday: McDonald’s Corporation (MCD), Gilead Sciences, Inc. (GILD), McKesson Corporation (MCK)

Source: Zacks, May 1, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.

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