Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified LKQ Corporation as such a stock due to the following factors:
- LKQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $83.9 million.
- LKQ has traded 391,432 shares today.
- LKQ is up 3.4% today.
- LKQ was down 7.3% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in LKQ with the Ticky from Trade-Ideas. See the FREE profile for LKQ NOW at Trade-Ideas
More details on LKQ:
LKQ Corporation, together with its subsidiaries, provides replacement parts, components, and systems needed to repair vehicles, primarily cars and trucks in the United States, the United Kingdom, Canada, Mexico, and Central America. LKQ has a PE ratio of 29.7. Currently there are 7 analysts that rate LKQ Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for LKQ Corporation has been 2.8 million shares per day over the past 30 days. LKQ has a market cap of $8.7 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.45 and a short float of 1.2% with 1.21 days to cover. Shares are down 18.1% year-to-date as of the close of trading on Thursday.
rates LKQ Corporation as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.5%. Since the same quarter one year prior, revenues rose by 27.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- LKQ CORP has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LKQ CORP increased its bottom line by earning $0.88 versus $0.71 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $0.88).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Distributors industry average. The net income increased by 35.9% when compared to the same quarter one year prior, rising from $54.05 million to $73.45 million.
- Net operating cash flow has significantly increased by 115.26% to $131.44 million when compared to the same quarter last year. In addition, LKQ CORP has also vastly surpassed the industry average cash flow growth rate of 59.22%.
- Powered by its strong earnings growth of 33.33% and other important driving factors, this stock has surged by 28.71% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full LKQ Corporation Ratings Report.