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LKQLKQ CorporationSell5.9·$26.28-2.79%
SellModerate Confidence
Investment thesis

A deep valuation discount — forward price-to-earnings of 7.9x, PEG ratio of 0.12, and 35.8% upside to the analyst consensus target — combined with free cash flow running at 153% of net income frame a recovery case, but two misses in the last four quarters and a confirmed price downtrend signal that fundamental pressure has not yet peaked.

Thesis pillars

  • Deep Value DiscountStable
  • Superior Free Cash ConversionStable
  • Earnings Delivery RiskStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

LKQ Corporation (LKQ) Stock Analysis

Recovery setup

SellModerate Confidence

Consumer Cyclical · Auto Parts

Sell if holding. Multiple concerning factors at $26.28: Consecutive earnings misses (2); Below 200-MA, MA slope -2.0%/30d (confirmed downtrend).

LKQ Corporation ("LKQ," the "Company" or "we") is a global distributor of vehicle products, including replacement parts, components and systems used in the repair and maintenance of vehicles, and specialty aftermarket products and accessories to improve the performance,... Read more

$26.28+35.9% A.UpsideScore 5.9/10#7 of 27 Auto Parts
QualityF-score8 / 9FCF yield11.47%
IncomeYield4.44%Payout60.00%sustainable
Stop $24.38Target $35.51(analyst − 13%)A.R:R 5.4:1
Analyst target$40.81+55.3%8 analysts
$35.51our TP
$26.28price
$40.81mean
$48

Sell if holding. Multiple concerning factors at $26.28: Consecutive earnings misses (2); Below 200-MA, MA slope -2.0%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 59. Score 5.9/10, moderate confidence.

Passes 8/9 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 31d clear, semi cycle peak clear, materials cycle peak clear). Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-30
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Jul 30, 202631d to earnings· next earnings call

Thesis

Rewards
Attractive valuation
Analyst upside: 36%
Risks
Consecutive earnings misses (2)
Below 200-MA, MA slope -2.0%/30d (confirmed downtrend)

Key Metrics

P/E (TTM)13.5
P/E (Fwd)8.1
Mkt Cap$6.9B
EV/EBITDA8.0
Profit Mgn3.7%
ROE8.1%
Rev Growth4.3%
Beta0.82
Dividend4.44%
Rating analysts15

Quality Signals

Piotroski F8/9

Options Flow

P/C1.46bearish
IV64%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

3 floor-breakers·1 ceiling hit

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Earnings History
1.1
Surprise Avg
2.0
Erm
5.0
Earnings Timing
5.0
Dividend Safety
5.0
Earnings concerns: 1B/2MDividend: 444.0%

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
2.4
Quality Rank
4.6
Value Rank
7.9
Attractive P/E vs peers

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

52w Position
3.3
Bollinger
3.6
Support Resistance
4.1
GatesDeath cross (50MA < 200MA)Momentum 6.0>=5.5A.R:R 5.4 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 31d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
59 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $24.72Resistance $27.08

Price Targets

$24
$36
A.Upside+35.1%
A.R:R5.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! NEWS_MOD=-1: HOLD_IF_HOLDING → SELL_IF_HOLDING

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-07-30 (31d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is LKQ stock a buy right now?

Sell if holding. Multiple concerning factors at $26.28: Consecutive earnings misses (2); Below 200-MA, MA slope -2.0%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 59. Prior stop was $24.38. Score 5.9/10, moderate confidence.

What is the LKQ stock price target?

Take-profit target: $35.51 (+35.9% upside). Prior stop was $24.38. Stop-loss: $24.38.

What are the risks of investing in LKQ?

Consecutive earnings misses (2); Below 200-MA, MA slope -2.0%/30d (confirmed downtrend).

Is LKQ overvalued or undervalued?

LKQ Corporation trades at a P/E of 13.5 (forward 8.1). TrendMatrix value score: 9.1/10. Verdict: Sell.

What do analysts say about LKQ?

15 analysts cover LKQ with a consensus score of 4.1/5. Average price target: $41.

What does LKQ Corporation do?LKQ Corporation ("LKQ," the "Company" or "we") is a global distributor of vehicle products, including replacement...

LKQ Corporation ("LKQ," the "Company" or "we") is a global distributor of vehicle products, including replacement parts, components and systems used in the repair and maintenance of vehicles, and specialty aftermarket products and accessories to improve the performance, functionality and appearance of vehicles.

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