LKQ Corporation Monthly Stock Report - January 02, 2026

Company Overview

LKQ Corporation, headquartered in Antioch, Tennessee, is a prominent entity in the auto parts industry, focusing on the consumer cyclical sector. Established in 1998, the company has carved a niche in the distribution of replacement parts, components, and systems essential for vehicle repair and maintenance. LKQ operates across four main segments: Wholesale-North America, Europe, Specialty, and Self Service.

With a robust portfolio that includes bumper covers, mechanical automotive parts, salvage products, and recreational vehicle appliances, LKQ's diverse offerings cater to a wide range of customers, including collision and mechanical repair shops, new and used car dealerships, and retail consumers across the U.S., Canada, and Europe. The auto parts industry, a critical segment within the consumer cyclical sector, is poised for substantial growth, making LKQ a compelling investment opportunity.

Analysts are optimistic, issuing a "buy" rating with target prices that suggest significant growth potential, corroborated by LKQ's impressive total revenue of approximately $14.1 billion and a substantial EBITDA of $1.64 billion.

52-Week Price Performance Analysis

52-Week Price Performance Chart

LKQ Corporation's stock has seen notable fluctuations over the past year. Currently priced at $30.20, the stock has experienced a decline of approximately 32.8% from its 52-week high of $44.82, reached in March 2025, to its current position. Throughout this period, the stock showed a downward trend, bolstered by consistent selling pressure, as observed in the fifty-day moving average of $30.18.

Technical Analysis:

• Current Price: $30.20
• 52-week High: $44.82 (March 2025)
• 52-week Low: $28.13
• Resistance Level: $35 (marked by red dashed line)
• Support Level: $30 (where stock has recently stabilized)

The stock's bearish sentiment is evident with the presence of a descending triangle pattern that has materialized over the past several months, highlighting the converging support and resistance levels. The inability to breach the $35 resistance indicates persistent selling pressure affecting the stock price.

Momentum Indicators: - Recent consolidation around the $30.20 level suggests a cautious pause in this downward trend, but without a significant breakout above the resistance, the bearish outlook remains pronounced. Investors need to closely monitor the potential breakout points: a breach above $35 could signify a positive shift, while a drop below $30 may suggest further declines.

Financial Performance and Metrics

Despite some recent headwinds, LKQ Corporation's financial performance illustrates a strong underlying business model:

• Total Revenue: Approximately $14.1 billion
• EBITDA: $1.64 billion
• Adjusted Earnings Per Share (EPS): $0.87 reported for Q2, below expectations ($0.92).
• Revenue Trend: Declined to $3.64 billion from $3.71 billion year-over-year.

LKQ's earnings results in Q2 2025 prompted the management to lower the full-year guidance for adjusted EPS to a range of $3.00 - $3.30, down from $3.40 - $3.70. Despite these setbacks, the company's operational profitability metrics and total revenue demonstrate resilience and a potentially strong recovery on the horizon.

Valuation Metrics: - Current Shares Outstanding: 255,966,006 - Short Interest: 12,055,295 shares, approximately 6.09% of the float.

The relatively low short interest indicates a generally positive sentiment among investors regarding the company's future performance.

Recent News and Developments

LKQ Corporation is in the midst of strategic restructuring. On December 4, 2025, the company announced plans to sell its Specialty segment in a move aimed at streamlining operations and concentrating on its core markets. This follows the successful sale of its Self Service segment to Pacific Avenue Capital Partners for $410 million.

Recent earnings reports, however, revealed challenges, with adjusted EPS falling short of expectations. The stock reached a 52-week low of $28.40 on December 9, 2025, reflecting investor concern over the company's revised guidance.

Despite these hurdles, market analysts have shown optimism. On December 10, 2025, Stephens & Co. began coverage with an "Overweight" recommendation and a one-year price target of $43.23, suggesting potential upside of over 50% from its current levels.

Market Sentiment and Analyst Recommendations

The general market sentiment surrounding LKQ Corporation remains cautiously optimistic:

• Analyst Consensus: Strong buy recommendation based on aggregated opinions from eight analysts.
• Target Prices:
• High Target Price: $50.00
• Mean Target Price: Approximately $41.19
• Median Price: $41.00

The mean recommendation score of 1.78 reinforces the bullish perspective among analysts.

Investment Opportunities:

• The low current price compared to analyst targets presents a solid entry point for investors seeking exposure to the auto parts sector.
• Potential recovery and restructuring strategies aimed at simplifying operations could yield long-term benefits.

Risks:

• The company's recent earnings miss and lowered guidance raise questions about its growth trajectory.
• The persistent bearish trend in the stock price suggests ongoing volatility, making it essential for investors to remain vigilant regarding both market conditions and LKQ's performance fundamentals.

In summary, LKQ Corporation presents a multifaceted investment opportunity set against an evolving backdrop of market challenges and potential for recovery. As recent developments unfold, investors should evaluate both the opportunities and risks associated with their positions in this leading player in the auto parts industry.