KARO

Karooooo (KARO) could produce exceptional returns because of its solid growth attributes.

Cartrack subscription revenue grew 20% in the fiscal second quarter. Cartrack net subscriber additions increased 34% to a record 94,516 during the quarter.

Karooooo's financial report included profits that fell short of expectations. However, management made a shrewd move that will pay off in the long run.

Karooooo NASDAQ: KARO reported accelerating subscription-revenue growth and record quarterly operating profit for the second quarter of fiscal 2027, supported by sales-capacity investments, customer additions and demand for its video solutions and Cartrack Tag products.

Does Karooooo Ltd. (KARO) have what it takes to be a top stock pick for momentum investors?

Karooooo (KARO) is well positioned to outperform the market, as it exhibits above-average growth in financials.

Karooooo Ltd. delivered another strong earnings beat, with revenue up 22% and robust subscriber growth in its core Cartrack product. KARO maintains high EBITDA (45%) and operating (28%) margins, despite FX-driven margin compression and increased sales and marketing spend. Balance sheet metrics are healthy, with $756 million in hard currency cash and a 2.13% dividend yield supporting capital flexibility while reducing default risk.

Karooooo Ltd. (KARO) Q1 2027 Earnings Call Transcript

Karooooo NASDAQ: KARO reported a stronger start to fiscal 2027, with management highlighting accelerating subscription revenue growth, record subscriber additions and record operating profit despite foreign exchange pressure from a stronger South African rand.

CION, ZTO and KARO made it to the Zacks Rank #1 (Strong Buy) income stocks list on July 8, 2026.