Antioch, Tennessee-based LKQ Corporation (LKQ) is a leading provider of alternative and specialty parts to repair and accessorize vehicles. With a market cap of $10.8 billion, LKQ operates through Wholesale-North America, Europe, Specialty, and Self-Service segments.
Companies worth $10 billion or more are generally described as “large-cap stocks,” LKQ fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the auto parts industry. It offers a wide range of replacement systems, components, and equipment for automobiles, trucks, and recreational vehicles.
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LKQ stock has declined 20.5% from its 52-week high of $53.53 touched on Apr. 1, 2024. However, LKQ has soared 15.3% over the past three months, notably outperforming the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 14.1% drop during the same time frame.
Over the past six months, LKQ stock has gained 5.4% notably outpacing XLY’s 1.7% dip. Meanwhile, the stock is down 20.4% over the past 52 weeks, significantly underperforming XLY’s 7.4% gains during the same time frame.
To confirm the recent upturn, LKQ has traded consistently above its 50-day and 200-day moving averages since mid-February.
LKQ stock prices soared nearly 6% after the release of its mixed Q4 results on Feb. 20. The company experienced several headwinds including losses due to forex translation, a 3.6% drop in organic sales and a marginal decline in topline due to the net impact of acquisitions and divestitures. Its overall revenues dropped 4.1% year-over-year to $3.4 billion, which missed the Street expectations by a small margin. Meanwhile, its adjusted EPS also observed a drop of 4.8% year-over-year to $0.80. However, this figure surpassed the consensus estimates by a notable 6.7%, which boosted investor confidence.
On a brighter note, LKQ expects to report some improvements in its financials in the coming quarters. In FY 2025, LKQ expects its organic revenues from parts and services to grow between 0% to 2% and its adjusted EPS to grow nearly 2% as per its midpoint guidance.
Furthermore, LKQ has significantly outperformed its peer Mobileye Global Inc.’s (MBLY) marginal 3 bps uptick over the past six months and a 55.2% decline over the past 52 weeks.
Among the seven analysts covering the LKQ stock, the consensus rating is a “Strong Buy.” Its mean price target of $53 suggests a 24.6% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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