Trade-Ideas: LKQ (LKQ) Is Today's Post-Market Leader Stock

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.

Trade-Ideas LLC identified LKQ ( LKQ) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified LKQ 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 $68.3 million.
  • LKQ is up 2.2% today from today's close.

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, distributes replacement parts, components, and systems used in the repair and maintenance of vehicles in the United States, the United Kingdom, the Netherlands, Belgium, Northern France, Canada, Mexico, and Central America. LKQ has a PE ratio of 21.9. Currently there are 8 analysts that rate LKQ a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for LKQ has been 2.7 million shares per day over the past 30 days. LKQ has a market cap of $8.4 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.08 and a short float of 1.6% with 2.43 days to cover. Shares are down 1.6% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates LKQ as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • LKQ's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Distributors industry average. The net income increased by 2.3% when compared to the same quarter one year prior, going from $104.65 million to $107.10 million.
  • LKQ CORP's earnings per share improvement from the most recent quarter was slightly positive. 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 $1.24 versus $1.03 in the prior year. This year, the market expects an improvement in earnings ($1.38 versus $1.24).
  • Net operating cash flow has significantly increased by 85.69% to $180.15 million when compared to the same quarter last year. Despite an increase in cash flow, LKQ CORP's cash flow growth rate is still lower than the industry average growth rate of 97.05%.
  • 39.50% is the gross profit margin for LKQ CORP which we consider to be strong. Regardless of LKQ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LKQ's net profit margin of 6.03% compares favorably to the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing