LKQ Corporation (LKQ): Today's Featured Automotive 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 Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 0.2%. By the end of trading, LKQ Corporation fell 55 cents (-2.5%) to $21.09 on heavy volume. Throughout the day, 4.8 million shares of LKQ Corporation exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $21.04-$21.72 after having opened the day at $21.61 as compared to the previous trading day's close of $21.64. Other companies within the Automotive industry that declined today were: SORL Auto Parts ( SORL), down 7.7%, Remy International ( REMY), down 4.9%, Federal Signal ( FSS), down 4.2%, and Tesla Motors ( TSLA), down 4.2%.
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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 $6.5 billion and is part of the consumer goods sector. The company has a P/E ratio of 25.1, above the S&P 500 P/E ratio of 17.7. Shares are up 2.6% year to date as of the close of trading on Thursday. Currently there are six 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 revenue growth, growth in earnings per share, increase in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the automotive industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the automotive industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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