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LKQLKQ CorporationBuy Wait6.2·$26.13+1.20%
Buy WaitModerate 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 RiskImproving
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

LKQ Corporation (LKQ) Stock Analysis

Recovery setup

Buy WaitVALUE-TRAP 1/5ValueGrowthModerate Confidence

Consumer Cyclical · Auto Parts

Earnings in 2 days (2026-07-30). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Wait for pullback to $25.79. Below 200-day MA (death cross); also weak momentum — blocks BUY_NOW at $26.13. Engine's entry $25.79 (50-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum.

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

$26.13+31.4% A.UpsideScore 6.2/10#4 of 37 Auto Parts
QualityF-score8 / 9FCF yield12.00%
IncomeYield4.83%Payout60.00%sustainable
Entry $25.79(50-day MA)Stop $24.09Target $34.37(analyst − 13%)A.R:R 4.8:1
Analyst target$39.50+51.2%8 analysts
$34.37our TP
$26.13price
$39.50mean
$45

Wait for pullback to $25.79. Below 200-day MA (death cross); also weak momentum — blocks BUY_NOW at $26.13. Engine's entry $25.79 (50-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Death cross but MACD improving, RSI 50. Earnings in 2 days. Wait until post-earnings. Score 6.2/10, moderate confidence.

Passes 6/9 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, semi cycle peak clear, materials cycle peak clear). Fails on death cross (50MA < 200MA) and earnings proximity 2d<=7d. Suitability: moderate.

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

Recent developments

updated 2026-07-27

Recent Developments — LKQ Corporation

Generated 2026-07-27T14:57:48Z.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Jul 30, 20262d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
No bear case signals

Key Metrics

P/E (TTM)12.9
P/E (Fwd)7.8
Mkt Cap$6.6B
EV/EBITDA7.8
Profit Mgn3.7%
ROE8.1%
Rev Growth4.3%
Beta0.82
Dividend4.83%
Rating analysts15

Quality Signals

Piotroski F8/9

Options Flow

P/C0.72neutral
IV66%elevated

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

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Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

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

Bollinger
2.5
Support Resistance
3.3
52w Position
3.7
GatesDeath cross (50MA < 200MA)EARNINGS PROXIMITY 2d<=7dMomentum 4.9<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.9>=4.5A.R:R 4.8 ≥ 1.5Insider activity: OKNo SEC red flagsSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
50 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $24.54Resistance $26.95

Price Targets

$24
$26
$34
A.Upside+31.4%
A.R:R4.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Earnings in 2 days - binary event risk
! Death cross — 50-day MA below 200-day MA
! EARNINGS_PROXIMITY:2d<=7d

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-07-30 (2d)

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?

Wait for pullback to $25.79. Below 200-day MA (death cross); also weak momentum — blocks BUY_NOW at $26.13. Engine's entry $25.79 (50-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Death cross but MACD improving, RSI 50. Earnings in 2 days. Wait until post-earnings. Target $34.37 (+31.5%), stop $24.09 (−8.5%), A.R:R 4.8:1. Score 6.2/10, moderate confidence.

What is the LKQ stock price target?

Take-profit target: $34.37 (+31.4% upside). Target $34.37 (+31.5%), stop $24.09 (−8.5%), A.R:R 4.8:1. Stop-loss: $24.09.

Is LKQ overvalued or undervalued?

LKQ Corporation trades at a P/E of 12.9 (forward 7.8). TrendMatrix value score: 9.1/10. Verdict: Buy (Wait for Entry).

What do analysts say about LKQ?

15 analysts cover LKQ with a consensus score of 4.1/5. Average price target: $40.

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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