A Junkyard Stock That's One Of The Market's Best Performers!

| About: LKQ Corporation (LKQ)
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The most fun part of managing money is getting to learn about the different and crazy ways that people earn a living.

Often a very good living.

If you met the person who started a company called LKQ, and asked him what his company did, he would tell you he was in the used car part business. Does that strike you as a person on the road to riches?

Probably not.

Look again: LKQ is a $10 billion large cap company that just so happens to be America's largest supplier of recycled, aftermarket, and reconditioned car and truck parts as well as heavy-duty truck parts. It was founded in 1998 and now has more than 500 facilities in Canada, Central America, Europe, Mexico, and the US.

That's not exactly Fred Sanford running a junk yard.

Data from Best Stocks Now App

LKQ is also a stock that I have owned and talked about before. In May of this year the company announced their acquisition of Sator Beheer, the European equivalent of LKQ. Upon announcement, LKQ stock broke out. At the beginning of this month LKQ announced yet another acquisition-Keystone Automotive. Again the stock broke out and I finally got back in. Why? Because LKQ qualifies as a Best Stock Now on the following three criteria:


Number one is performance. LKQ is one of the top-performing stocks in the entire market! I bet you're scratching your head right now over this stock that you've never heard of!

Data from Best Stocks Now App

Over the last 10 years, LKQ has delivered 32% per year along with fenders for '69 Datsun's! Over the last five years LKQ has delivered 47% per year. Over the last 3 years LKQ has delivered 42% to investors. And over the last 12 months LKQ is up 55%.

When I stack this little collision repair company against all of the other companies that it competes with, LKQ gets a performance grade of 'A'. And don't forget this stock goes head to head with Facebook (NASDAQ:FB), Netflix (NASDAQ:NFLX), Twitter (NYSE:TWTR), and all of those other high-flying tech stocks invented in college dorm rooms!


What about valuation? The valuation of LKQ is 25 times forward earnings but it's expected to continue to grow by 25% per year which it's already been doing over the past five years. That gives it a PEG ratio under 1 (0.98). The stock has 90% upside potential.

Data from Best Stocks Now App

So from a momentum and performance point of view, I give LKQ an 'A'. The Investor's Business Daily gives it a relative strength rating of 86-not bad. But relative strength leaves out valuation. And LKQ does pass the valuation test.

Stock Chart

Lastly we have to check that all-important stock chart.

LKQ just hit a new high-it's breaking-out right now after about a three month consolidation. LKQ passes my performance, valuation, AND stock chart test!

Data from Best Stocks Now App

Out of the nearly 3,800 stocks that I follow in my Best Stocks Now app, LKQ comes in at #81 and it is a stock that I own at Gunderson Capital Management.

Data from Best Stocks Now App

Please follow me on Twitter or at my website for a change in opinion of the stock or for information on my management services.

Disclosure: I am long LKQ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.