| Stock (Symbol) | Stock Price | |
LKQ Corp. (LKQ) |
$25 |
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| Data is as of | Expected to Report | Sector |
March 2, 2015 |
Apr 27 – May 01 |
Food & Necessities |
| Sharek’s Take | ||
 LKQ dropped after posting disappointing earnings last week, and it also lowered 2015 estimates. The reasons for the shortfall were (1) low scrap metal prices (2) negative foreign exchange rates due to the strong dollar and (3) higher taxes. Also profit margins were down, which brings me back to this NYPost article. I’ve been waiting for LKQ to prove the doubters wrong, but here we are almost a year later and it hasn’t. Now I’m looking at 0% and 9% profit estimates for the next two quarters and am holding a stock that just dropped (and stayed down) after the bad news hit the wires. I’ve been sitting on LKQ for a while, it hasn’t gone anywhere, and probably won’t for another six months. I will sell LKQ from the Growth Portfolio today and keep it on my radar to perhaps buy back at a later time. |
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| One-Year Chart | ||
 LKQ has many chances to break out and move higher, yet it didn’t. Why? Maybe because it didn’t deserve to? Now we’re going through a period of single-digit profit growth. The stock isn’t even on sale as it sells for 17x earnings. |
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| Earnings Table | ||
 Revenue jumped 28% last qtr yet profits increased just 4%. Sales growing faster than profits is not a good sign (and this has been happening for a while).LKQ missed estimates by a whopping 7 cents, and hasn’t beaten the street in well over a year. Annual Profit Estimates took a big drop and now LKQ is expected to make $1.70 in 2016, what it was supposed to make in 2016. Quarterly estimates are poor through Q2 and are consistently declining. |
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| Fair Value | ||
 Now I feel the stock has little upside this year. Who knows what next year brings as fundamentals are declining. |
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| Ten-Year Chart | ||
 This stock had been a good one to own through most of the decade, but now LKQ looks to be building a different pattern. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
N/A |
LKQ is having issues, and it seems like a waste of time for me to stick around and see what happens as I stuck around and haven’t been rewarded for it. I feel someday the stock will turn around, go up, and then go on another nice decade run higher. But right now I feel that turning point is many months away. I will sell LKQ from the Growth Portfolio today. |
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Aggressive Growth Portfolio
N/A |
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