LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize vehicles. The company operates in the automotive aftermarket industry, offering a range of products including recycled original equipment manufacturer (OEM) parts, aftermarket parts, and remanufactured parts. LKQ serves a diverse customer base, including body shops, repair shops, and individual consumers, focusing on sustainability by promoting the reuse of vehicle components. Through its extensive network of facilities and commitment to quality, LKQ aims to provide cost-effective solutions that help extend the life of vehicles while contributing to environmental conservation. Read More
LKQ’s fourth quarter saw revenue come in ahead of Wall Street’s expectations, even as overall sales remained flat year on year. The market responded positively, reflecting confidence in LKQ’s execution amid a tough backdrop. Management attributed performance to steady share gains with large repair shop groups (MSOs), disciplined cost actions, and the simplification of its business through the sale of its self-service segment. CEO Justin Jude acknowledged that headwinds from weak repairable claims, tariffs, and ongoing softness in Europe all challenged profitability, but highlighted the company’s ability to generate robust free cash flow and maintain operational discipline.
A number of stocks fell in the afternoon session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.
Automotive parts company LKQ (NASDAQ:LKQ) reported Q4 CY2025 results beating Wall Street’s revenue expectations, but sales were flat year on year at $3.31 billion. Its non-GAAP profit of $0.59 per share was 9.3% below analysts’ consensus estimates.
Automotive parts company LKQ (NASDAQ:LKQ) beat Wall Street’s revenue expectations in Q4 CY2025, but sales were flat year on year at $3.31 billion. Its non-GAAP profit of $0.59 per share was 9.3% below analysts’ consensus estimates.
Shares of automotive parts company LKQ (NASDAQ:LKQ)
fell 4.5% in the afternoon session after its competitor, Genuine Parts Company (GPC), reported disappointing fourth-quarter financial results, sparking concerns across the auto parts sector.
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges.
However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
LKQ trades at $32.86 per share and has stayed right on track with the overall market, gaining 11.3% over the last six months. At the same time, the S&P 500 has returned 10%.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
As of late 2025, LKQ Corporation (NASDAQ: LKQ) stands at a critical crossroads. Long celebrated as the undisputed king of the automotive "circular economy," the company has spent two decades aggressively rolling up salvage yards and aftermarket distributors across North America and Europe. However, 2025 has marked a fundamental shift in its narrative. No longer [...]
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
In a move that cements one of the most dramatic corporate turnarounds in recent history, Carvana Co. (NYSE: CVNA) officially joined the S&P 500 Index today, December 22, 2025. The inclusion marks the final chapter of the online used-car retailer’s journey from the brink of insolvency in 2022
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
