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 0.3%. By the end of trading, LKQ Corporation fell $0.34 (-1.4%) to $24.00 on light volume. Throughout the day, 765,693 shares of LKQ Corporation exchanged hands as compared to its average daily volume of 1,805,800 shares. The stock ranged in price between $23.84-$24.42 after having opened the day at $24.31 as compared to the previous trading day's close of $24.34. Other companies within the Automotive industry that declined today were: China Automotive Systems ( CAAS), down 3.2%, Spartan Motors ( SPAR), down 3.2%, Miller Industries ( MLR), down 3.0% and Westport Innovations ( WPRT), down 2.7%.
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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 $7.3 billion and is part of the consumer goods sector. The company has a P/E ratio of 27.8, above the S&P 500 P/E ratio of 17.7. Shares are up 16.0% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate LKQ Corporation a buy, 1 analyst rates it a sell, and 2 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, increase in net income, growth in earnings per share, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 6.7%, Motorcar Parts of America ( MPAA), down 3.5%, Tesla Motors ( TSLA), down 2.4% and Toyota Motor ( TM), down 1.8%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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