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LKQLKQ CorporationHold6.3·$22.73-13.87%
HoldModerate 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

Falling Knife setup

HoldValueGrowthModerate Confidence

Consumer Cyclical · Auto Parts

Hold if already holding. Not a fresh buy at $22.73, but acceptable to hold if already in. Reasons: Negative momentum; 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

$22.73+52.1% A.UpsideScore 6.3/10#6 of 37 Auto Parts
QualityF-score8 / 9FCF yield11.75%
IncomeYield4.52%Payout60.00%sustainable
Stop $21.02Target $34.37(analyst − 13%)A.R:R 5.0:1
Analyst target$39.50+73.8%8 analysts
$34.37our TP
$22.73price
$39.50mean
$45

Hold if already holding. Not a fresh buy at $22.73, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-MA, MA slope -2.3%/30d (confirmed downtrend). Chart setup: Death cross, below all MAs, RSI 35, MACD bearish. Mixed signals. Hold existing position. Score 6.3/10, moderate confidence.

Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: speculative.

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

Recent developments

updated 2026-07-31
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Jul 30, 2026· next earnings call

Thesis

Rewards
Attractive valuation
Positive insider activity
Analyst upside: 52%
Risks
Negative momentum
Below 200-MA, MA slope -2.3%/30d (confirmed downtrend)

Key Metrics

P/E (TTM)13.3
P/E (Fwd)7.9
Mkt Cap$6.7B
EV/EBITDA7.9
Profit Mgn3.7%
ROE8.1%
Rev Growth4.3%
Beta0.82
Dividend4.52%
Rating analysts15

Quality Signals

Piotroski F8/9

Options Flow

P/C1.69bearish
IV60%elevated

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

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

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

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Obv
1.0
Ma Position
1.0
Vol Acceleration
1.7
Macd
2.7
Rsi
3.5
Volume
10.0
Volume distribution (falling OBV)Below 200-MA, MA slope -2.3%/30d — confirmed downtrendVolume surge (3.3x avg) on selloff
GatesMomentum 3.3<4.5Death cross (50MA < 200MA)A.R:R 5.0 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARFalling KnifeSuitability: Speculative
RSI
35 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $21.17Resistance $27.28

Price Targets

$21
$34
A.Upside+52.1%
A.R:R5.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! momentum at 3.3 (below the engine's 4.5 threshold)
! Death cross — 50-day MA below 200-day MA

Earnings

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

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?

Hold if already holding. Not a fresh buy at $22.73, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-MA, MA slope -2.3%/30d (confirmed downtrend). Chart setup: Death cross, below all MAs, RSI 35, MACD bearish. Mixed signals. Hold existing position. Target $34.37 (+51.2%), stop $21.02 (−8.1%), A.R:R 5.0:1. Score 6.3/10, moderate confidence.

What is the LKQ stock price target?

Take-profit target: $34.37 (+52.1% upside). Target $34.37 (+51.2%), stop $21.02 (−8.1%), A.R:R 5.0:1. Stop-loss: $21.02.

What are the risks of investing in LKQ?

Negative momentum; Below 200-MA, MA slope -2.3%/30d (confirmed downtrend).

Is LKQ overvalued or undervalued?

LKQ Corporation trades at a P/E of 13.3 (forward 7.9). TrendMatrix value score: 9.1/10. Verdict: Hold.

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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