| Stock (Symbol) | Stock Price | |
LKQ Corp. (LKQ) |
$28 |
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| Data is as of | Expected to Report | Sector |
May 16, 2013 |
n/a |
Food & Necessities |
| Sharek’s Take | ||
 On April 19th, the NY Post ran an article slamming LKQ stock, saying LKQ isn’t pricing its used auto parts competitively enough to sell and also that profit margins are declining. LKQ reported quarterly earnings later that month, and gross profit margin continued to decline to 40.1% from 42% in the year-ago period. But the decline was due to European operations as North American margins were up 0.5% to 0.7% (LKQ is expanding rapidly into Europe). I’ll have to wait and see how all this affects LKQ stock, but I’m concerned and will monitor the situation, but am always reluctant to throw in the towel on a good stock due to someone else’s opinion. LKQ’s profit growth is expected to accelerate the next few quarters and the stock has 40% upside to next year’s Fair Value. |
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| One-Year Chart | ||
 This stock’s gotten some bad press the last six months or so, but that gave us the opportunity to get in. Notice Estimates show 31% and 27% profit growth coming. If profit margins can remain steady this stock could rally past $30. |
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| Earnings Table | ||
 Revenue jumped 36% last quarter, 29% coming from acquisitions and 6% organic growth. Profits increased 21%.The weather storms hurt LKQ’s sales 2QtrsAgo, causing the company to miss. But LKQ met estimates last qtr. Annual Profit Estimates are around what they were last qtr. Quarterly profit growth estimates look great. I hope the company actually hits these numbers and the stock rallies. |
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| Fair Value | ||
 LKQ’s P/E was very high last year. Now the stock’s come down, the P/E’s gone down and LKQ‘s undervalued with solid 40% upside to next year’s Fair Value. |
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| Ten-Year Chart | ||
 I should have own this stock yeeeaaarrrssss ago. I knew about LKQ stock, but didn’t look into the company enough to know what exactly it did. I love the yearly profit growth & stock growth numbers. So high. Even this year 30% profit growth is expected. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
18 of 25 |
LKQ needs to prove its skeptics wrong. I’m keeping a close eye on the stock. Beyond that, there’s good profit growth coming and the stock’s got solid upside to its Fair Value. LKQ is ranked 18th of 25 stocks in the Growth Portfolio Power Rankings. It’s bunched in with a lot of other stocks in the portfolio that I need to research before putting LKQ higher. This stock isn’t timely enough for the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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