LKQ Corporation Struggles Amidst Market Challenges
Chicago’s LKQ Corporation (LKQ), a top provider of alternative and specialty vehicle parts, has faced significant hurdles this past year. The company, with a market capitalization of $9.7 billion, operates across wholesale-North America, Europe, specialty, and self-service segments.
Market Performance Shows Decline
Over the last year, LKQ has notably lagged behind the broader market. The stock has dropped 21.4% in the past 52 weeks, while only gaining 2.6% year-to-date. In comparison, the S&P 500 Index ($SPX) saw a strong increase of 20.7% over the same time and 3.2% in 2025.
Comparison with Consumer Discretionary Sector
Further analysis reveals that LKQ has underperformed against the Consumer Discretionary Select Sector SPDR Fund (XLY), which rose by 24.4% in the past year, although LKQ has edged ahead of XLY’s slight decline of 25 basis points in 2025.
Disappointing Q3 Results Impact Confidence
The company’s struggles were highlighted following the release of its Q3 results on October 24. Although LKQ’s adjusted earnings per share (EPS) of $0.88 was slightly above analysts’ expectations by 1 cent, its revenue of $3.6 billion represented just a 45 basis point year-over-year increase, missing estimates by 1.3%. Soft volumes have led LKQ to adjust its guidance for annual earnings and revenue downward, prompting investor hesitation.
Future Expectations and Analyst Ratings
Looking ahead, LKQ is expected to report its fiscal 2024 results soon, with analysts projecting a 10.2% decline in earnings per share to $3.44 compared to the prior year. The company has shown a mixed earnings surprise history recently; it has surpassed bottom-line estimates twice in the last four quarters while falling short on two other occasions.
Despite these challenges, among the eight analysts covering LKQ, the consensus rating remains a “Strong Buy.” This is based on six “Strong Buy,” one “Moderate Buy,” and one “Hold” rating.
Analyst Price Target Adjustments
On February 11, JP Morgan (JPM) analyst Samik Chatterjee reiterated an “Overweight” rating but lowered the price target for the stock to $48. LKQ’s mean price target of $53.43 indicates a potential increase of 41.8% from current levels, whereas the highest target of $60 suggests an impressive upside of 59.2%.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information stated is for informational purposes only. To learn more, please view the Barchart Disclosure Policy here.
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The views expressed here are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
