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 Discount→Stable
- Superior Free Cash Conversion→Stable
- Earnings Delivery Risk→Stable
- +1 more pillar — see the Why tab for full reasoning
LKQ Corporation (LKQ) Stock Analysis
Falling Knife setup
Consumer Cyclical · Auto Parts
Sell if holding. Momentum 4.3/10 is below the 5.0 floor at $25.38 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (2); Below 200-MA, MA slope -2.4%/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
Sell if holding. Momentum 4.3/10 is below the 5.0 floor at $25.38 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (2); Below 200-MA, MA slope -2.4%/30d (confirmed downtrend). Chart setup: Death cross, below all MAs, RSI 37, MACD bearish. Score 6.2/10, moderate confidence.
Passes 6/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.
Recent developments
updated 2026-07-20Recent Developments — LKQ Corporation
Latest news
- NEWS What To Expect From LKQ’s (LKQ) Q1 Earnings - StockStory — StockStory neutral
- NEWS LKQ (LKQ) Q4 2024 Earnings Call Transcript - The Motley Fool — The Motley Fool neutral
- NEWS LKQ (LKQ) Q4 2024 Earnings Call Transcript - AOL.com — AOL.com neutral
- NEWS INVESTOR ALERT: Pomerantz Law Firm Reminds Investors with Losses on their Investment in LKQ Corporation of Class Action — ChartMill negative
- NEWS LKQ Stockholder Alert: Robbins LLP Reminds Investors of the Class Action Lawsuit Filed Against LKQ Corporation - Morning — Morningstar negative
Generated 2026-07-20T05:32:10Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker·1 ceiling hit
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 4.3/10 is below the 5.0 floor at $25.38 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (2); Below 200-MA, MA slope -2.4%/30d (confirmed downtrend). Chart setup: Death cross, below all MAs, RSI 37, MACD bearish. Prior stop was $23.95. Score 6.2/10, moderate confidence.
Take-profit target: $35.51 (+39.9% upside). Prior stop was $23.95. Stop-loss: $23.95.
Consecutive earnings misses (2); Below 200-MA, MA slope -2.4%/30d (confirmed downtrend).
LKQ Corporation trades at a P/E of 12.7 (forward 7.6). TrendMatrix value score: 9.1/10. Verdict: Sell.
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.