The S&P Dow Jones Indices added the stock of this aftermarket auto parts distributor to the S&P 500 Index component last month. The company is expected to grow by 38.2% next quarter, and 27.5% this year.
LKQ Corp. (LKQ)
From Dow Theory Forecast
LKQ Corp. (LKQ) is being added to the Focus List. A wholesale distributor of aftermarket auto parts, LKQ uses a steady diet of acquisitions to complement organic growth.
Annual sales have climbed more than 5% in 14 straight years, a trend expected to extend at least through 2017. Demand for replacement auto parts remains healthy, as more Americans elect to keep older cars on the roads.
Analyst estimates have risen over the past 60 days, with the consensus expecting 23% higher earnings per share on 32% revenue growth for the June quarter. LKQ, scoring at least 95 for both sector-specific ranks, is also a Buy and a Long-Term Buy.
Richard J. Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233- 5922, May 23, 2016