LKQ Corp. (LKQ)
LKQ Corp. (LKQ): High S&P Value Rating
High S&P Value Rating is a simple yet reliable way to help you enhance the performance of your investments. Standard & Poor’s provides a Value Rating for more than 1,000 stocks. The rating is scaled from 1 to 5 with 5 indicating the most undervalued stocks. I prefer to invest in companies with S&P Value Ratings of 4 or 5. Most brokerages provide S&P ratings for free to investors.
LKQ Corp. (LKQ) currently has a Standard & Poor’s Value Rating of 5. The company is one of the largest providers of recycled automotive replacement parts with 100 sales and processing centers in North America and Europe. LKQ buys wrecked cars at auctions, salvages the reusable parts, and sells the parts to collision repair shops.
LKQ has established an enviable record of steady 20% sales and earnings growth during the past decade through its aggressive acquisition program. Sales will rise 10% and earnings per share are forecast to rise 15% during the next 12 months ending 6/30/16, but new acquisitions could drive sales and earnings higher.
Standard & Poor’s currently rates LKQ as highly undervalued with its best Value Rating of 5. At 21.4 times current EPS, LKQ shares are reasonable, the balance sheet is very strong, and growth is steady and rapid. I expect LKQ’s stock price to climb 31% to reach my Minimum Sell Price of 38.54 within one to two years. Buy LKQ at the current price.
I will continue to follow LKQ, as well as many other undervalued, high-quality companies in my Cabot Benjamin Graham Value Investor. For more information on how to subscribe, click here.
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500 West Madison Street
Chicago, IL 60661
Index Membership: N/A
Sector: Consumer Goods
Industry: Auto Parts
Full Time Employees: 29,500
8/25/15 High S&P Value Rating
3/19/2015 Growth Stocks for Retired Investors