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↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
LKQ Corporation (LKQ) Stock Analysis
Recovery setup
Consumer Cyclical · Auto Parts
Sell if holding. At $25.42, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2); Below 200-MA, MA slope -2.3%/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. At $25.42, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2); Below 200-MA, MA slope -2.3%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 45. Score 5.9/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 73d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-08-16Recent Developments — LKQ Corporation
Latest news
- NEWS LKQ (LKQ) To Report Earnings Tomorrow: Here Is What To Expect - Yahoo Finance — Yahoo Finance positive
- NEWS LKQ (LKQ) To Report Earnings Tomorrow: Here Is What To Expect - StockStory — StockStory neutral
- NEWS LKQ (LKQ) To Report Earnings Tomorrow: Here Is What To Expect - TradingView — TradingView neutral
- NEWS What To Expect From LKQ’s (LKQ) Q1 Earnings - StockStory — StockStory neutral
- NEWS LKQ Maintains Rating by Barclays -- Price Target Lowered to $30 - GuruFocus — GuruFocus negative
Generated 2026-08-16T18:22:06Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
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. At $25.42, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2); Below 200-MA, MA slope -2.3%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 45. Prior stop was $23.64. Score 5.9/10, moderate confidence.
Take-profit target: $28.27 (+11.2% upside). Prior stop was $23.64. Stop-loss: $23.64.
Consecutive earnings misses (2); Below 200-MA, MA slope -2.3%/30d (confirmed downtrend).
LKQ Corporation trades at a P/E of 14.1 (forward 8.2). TrendMatrix value score: 8.5/10. Verdict: Sell.
15 analysts cover LKQ with a consensus score of 4.1/5. Average price target: $33.
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.