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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.
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.
