LKQ Corporation (LKQ): Today's Featured Wholesale Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

LKQ Corporation ( LKQ) pushed the Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole closed the day up 0.2%. By the end of trading, LKQ Corporation fell 33 cents (-1.5%) to $21.47 on light volume. Throughout the day, 1.3 million shares of LKQ Corporation exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $21.35-$21.85 after having opened the day at $21.70 as compared to the previous trading day's close of $21.80. Other companies within the Wholesale industry that declined today were: Shengkai Innovations ( VALV), down 5%, Navarre Corporation ( NAVR), down 3.5%, Hudson Technology ( HDSN), down 3%, and Taitron Components ( TAIT), down 2.9%.
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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 Corporation has a market cap of $6.41 billion and is part of the services sector. The company has a P/E ratio of 25.4, above the S&P 500 P/E ratio of 17.7. Shares are up 44.9% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate LKQ Corporation a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates LKQ Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, solid stock price performance and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, SED International Holdings ( SED), up 11.1%, Grupo Casa Saba S.A.B. de C.V ( SAB), up 8.3%, China Armco Metals ( CNAM), up 7.4%, and Bluelinx Holdings ( BXC), up 2.7%, were all gainers within the wholesale industry with Airgas ( ARG) being today's featured wholesale industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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