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 down 0.2%. By the end of trading, LKQ Corporation fell 30 cents (-1.3%) to $22.36 on light volume. Throughout the day, 1.2 million shares of LKQ Corporation exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $22.18-$22.72 after having opened the day at $22.44 as compared to the previous trading day's close of $22.66. Other companies within the Wholesale industry that declined today were: InfoSonics Corporation ( IFON), down 6.8%, Shengkai Innovations ( VALV), down 4.8%, Hudson Technology ( HDSN), down 3.3%, and China Auto Logistics ( CALI), 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 $6.81 billion and is part of the consumer goods sector. The company has a P/E ratio of 26.9, above the S&P 500 P/E ratio of 17.7. Shares are up 8.5% year to date as of the close of trading on Friday. 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, notable return on equity and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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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