DailyIQ
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Sector:Consumer CyclicalAll sectors
Last updated 2 minutes ago

LKQ·LKQ Corporation

$.
-. (-.%)
After Hours
High
$25.88
Open
$25.67
Market Cap
6.54B
52W High
$39.77
Low
$25.37
P. Close
$25.39
P/E
12.70
52W Low
$23.98
Fwd P/E
7.70
DailyIQ Est.
$42.12
Technical Score (1D)
27
SELL
News Sentiment
38
BEARISH
The latest investor letter from Palm Valley Capital flagged LKQ’s underperformance in Q2, citing a lagging sector and limited small‑cap opportunities as the main drivers. This underperformance relative to small‑cap benchmarks suggests the company may be facing headwinds that could keep valuation pressure on for the next trading week. Traders should keep an eye on the forthcoming earnings guidance, which will clarify whether the mandate is to prop up earnings or to cut costs. In particular, any announced cost‑cutting initiatives or new product launches could signal a shift in the company’s operating model and affect short‑term sentiment. The sector lag noted in the letter also implies that broader industry trends may be weighing on LKQ’s growth prospects, potentially dampening upside expectations. Watch for updates on how the company plans to navigate these sector challenges, especially any changes to its supply‑chain or inventory management strategies. Additionally, the limited small‑cap opportunities highlighted by the analyst suggest that the firm may need to broaden its market reach or diversify its product mix to regain momentum. Finally, the next earnings release will be the key event to watch, as it will provide concrete guidance on revenue, margin expectations, and any strategic initiatives that could alter the company’s trajectory over the next 1–10 trading days.
Earnings Summary
LKQ Corporation is a leading distributor of replacement parts and accessories for vehicles, operating primarily in the automotive aftermarket sector with a global footprint across North America, Europe, and specialty markets. The company serves repair shops, dealerships, and consumers, positioning it as a key player in the consumer cyclical auto parts industry. In the most recent reporting period, LKQ posted a Q1 2026 EPS of $0.67 versus an estimate of $0.69, and revenue of $3.469 billion, up from $3.312 billion in Q4 2025, indicating a rebound after a dip in the prior quarter; the Q4 2025 EPS of $0.59 fell short of the $0.78 estimate, while Q1 2026 missed by a narrow margin, contrasting with the Q4 2024 and Q1 2025 beats of $0.80 and $0.79 respectively. Over the last four quarters, the company has alternated between beating and missing analyst expectations, with EPS beating in three of six quarters and revenue growth remaining modest, rising only 1.2% over the past two years and projected to grow 6.2% next year. Historically, LKQ has shown a pattern of steady but slow revenue expansion coupled with volatile earnings, reflecting the cyclical nature of the aftermarket business and margin pressures. Recent news highlights a 12‑month GAAP operating margin of 6.9%, signaling profitability under pressure, and a strategic review that may involve divestitures to improve margins; the company’s sustainability report and analyst upgrades suggest confidence in long‑term growth, yet organic revenue has declined 2.3% year‑on‑year for two years, underscoring current challenges. Investors should watch for guidance updates in the upcoming earnings call, particularly any revisions to revenue or margin forecasts, commentary on inventory levels and supply‑chain dynamics, and progress on the strategic review, as these factors will likely shape the company’s near‑term performance and investor sentiment.

EPS

EstBeatMiss
$0.54$0.65$0.76$0.87$0.97Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$0.71 - -
Q1'26$0.69$0.67-2.4%
Q4'25$0.78$0.59-24.7%
Q3'25$0.76$0.84+11.0%
Q2'25$0.92$0.87-5.8%
Q1'25$0.78$0.79+1.5%

Revenue

EstBeatMiss
$3.3B$3.4B$3.5B$3.6B$3.7BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$3.5B - -
Q1'26$3.4B$3.5B+1.3%
Q4'25$3.5B$3.3B-4.2%
Q3'25 - $3.5B -
Q2'25 - $3.6B -
Q1'25 - $3.5B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

LKQ Stock Snapshot

LKQ is currently trading at $25.39, giving LKQ Corporation a market cap of 6.54B and a P/E ratio of 12.7. Today's range spans $25.37–$25.88, with shares opening at $25.67 and moving up $0.00 (0.0%) from the prior close. DailyIQ's technical score sits at 27/100 (SELL) with a news sentiment reading of 38/100.

Over the past year LKQ has traded between $23.98 and $39.77 - the current price is +5.9% off the 52-week low and -36.2% from the high. 17 analysts cover the stock with a Buy consensus and a mean 12-month target of $40.81 (range $33.00–$47.50), implying upside of +60.7%.

The data doesn't make a strong case for LKQ right now: 27/100 technical score (SELL), bearish sentiment (38/100), price $25.39 (near 52-week lows). The current P/E ratio stands at 12.7. For a small-cap with 6.54B in Consumer Cyclical market cap, this kind of setup often leads to rangebound or drifting price action - the kind of environment where holding the stock has opportunity cost and the exit is easier said than done in thin markets. Annual range: $23.98–$39.77.

Small-cap Consumer Cyclical names with SELL technicals (27/100) and bearish sentiment (38/100) like LKQ tend to experience sentiment-driven re-ratings more sharply in both directions. At $25.39 (near 52-week lows in $23.98–$39.77), the current setup suggests a stock that needs a material positive catalyst — not incremental improvement — to reverse the technical and sentiment readings that now define the 6.54B market cap trajectory.