LKQ Corporation Shows Resilience Amid Market Fluctuations
Antioch, Tennessee-based LKQ Corporation (LKQ) is a prominent provider of alternative and specialty parts, catering to the repair and customization of vehicles. With a robust market cap of $10.8 billion, LKQ operates through several segments, including Wholesale-North America, Europe, Specialty, and Self-Service.
As a large-cap stock, LKQ’s market capitalization marks its significant standing in the auto parts industry. The company offers a comprehensive range of replacement systems, components, and equipment for automobiles, trucks, and recreational vehicles, highlighting its critical role in vehicle maintenance and enhancement.
Recently, LKQ Stock experienced a decline of 20.5% from its 52-week high of $53.53, which was reached on April 1, 2024. However, the stock has notably risen by 15.3% over the past three months, outperforming the Consumer Discretionary Select Sector SPDR Fund (XLY), which saw a 14.1% decrease within the same period.
In the last six months, LKQ Stock has grown by 5.4%, while the XLY experienced a slight dip of 1.7%. Over the past year, however, LKQ has dropped by 20.4%, underperforming compared to XLY’s 7.4% gains.
To validate its recent recovery, LKQ has maintained trading above both its 50-day and 200-day moving averages since mid-February, indicating a positive trend.
The company’s stock surged nearly 6% following the release of its mixed Q4 results on February 20. Although LKQ faced challenges such as losses from foreign exchange translation and a 3.6% decline in organic sales, and experienced a slight decrease in overall revenue, missing expectations slightly, its adjusted EPS dropped only 4.8% year-over-year to $0.80. This figure still surpassed consensus estimates, thus boosting investor confidence.
Looking ahead, LKQ anticipates financial improvements in future quarters. For fiscal year 2025, the company expects its organic revenues from parts and services to grow between 0% to 2%, and adjusted EPS is projected to increase by nearly 2% based on midpoint guidance.
In comparison, LKQ has outperformed its competitor Mobileye Global Inc. (MBLY), which has experienced a mere 3 basis points uptick over the last six months and a staggering 55.2% decline over the past year.
A consensus of seven analysts covering LKQ Stock has rated it as a “Strong Buy.” The average price target of $53 suggests a promising upside potential of 24.6% from current 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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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