Zacks Investment Research·Oct 28, 2026
New Strong Sell Stocks for October 28thBURL, LKQ and PEGA have been added to the Zacks Rank #5 (Strong Sell) List on October 28th, 2026.
LKQ's top line has contracted for several consecutive quarters, with revenue down 5.1% year over year in 2026Q3 and 6.4% in 2026Q2, and gross margin slipping to 37.2% from a 38.8% to 39.8% band through 2024 and 2025, suggesting spread compression from used-vehicle pricing is weighing on procurement economics.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue declined 5.1% year over year in 2026Q3 while gross margin fell to 37.2% and operating margin compressed to 1.6% from roughly 8 to 9 percent in 2024, indicating fixed SG&A near $959M is absorbing a shrinking gross profit base.
LKQ Corporation is the leading provider of alternative aftermarket, salvage, and recycled auto parts, with a strong presence in North America and Europe.
The company has demonstrated resilience through cyclical headwinds, maintaining performance despite challenging market conditions.
LKQ has been gaining market share, reinforcing its competitive position in the aftermarket auto parts industry.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 29, 2026 | $0.50-14.5% vs $0.58 | $3.3B-1.2% vs $3.4B |
Q3 2026 Jul 30, 2026 | $0.67-5.4% vs $0.71 | $3.4B-2.2% vs $3.5B |
Q2 2026 Apr 30, 2026 | $0.67+0.0% vs $0.67 | $3.5B+2.2% vs $3.4B |
Q1 2026 Feb 19, 2026 | $0.59-9.2% vs $0.65 | $3.3B+2.0% vs $3.2B |
BURL, LKQ and PEGA have been added to the Zacks Rank #5 (Strong Sell) List on October 28th, 2026.
SAN FRANCISCO, Oct. 26, 2026 (GLOBE NEWSWIRE) -- On October 23, 2026, investors in LKQ Corporation (NASDAQ: LKQ) saw the price of their shares tumble $5.05 (-22%) on news of its CEO's immediate departure and revelations of continued problems with its Enterprise Resource Planning (“ERP”) system implementation in Europe. Previously, on July 30, 2026 shares fell $3.79 (-14%) when LKQ investors partially glimpsed the company's ERP implementation problems but were assured operational processes had normalized.
The automotive parts-and-services company ousted its chief executive and launched a review of its European operations after a disappointing quarterly performance. Shares sank.
Salvatore A. Abbate appointed President and Chief Executive Officer Third quarter results reflect significant underperformance in Europe Alvarez & Marsal retained to advise Company on European operations Withdraws full-year 2026 guidance ANTIOCH, Tenn.
Benchmark LKQ against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for LKQ Corporation (LKQ)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $20.05 | $5.11B | 19.89 | -3.06% | 1.89% | 3.95% | 6.04% | |
| $122.80 | $16.93B | 547.24 | 3.46% | 0.12% | 0.68% | 3.3% | |
| $45.50 | $2.74B | 27.71 | -5.42% | 1.16% | 4.48% | 2.18% | |
| $3216.35 | $52.65B | 21.08 | 7.39% | 12.65% | — | — | |
| $89.89 | $74.49B | 26.94 | 6.42% | 14.27% | — | — | |
| $10.52 | $199.18M | -48.93 | 4.28% | -0.53% | -1.57% | — |
LKQ Corporation (LKQ) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
LKQ Corporation (LKQ) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 29, 2026·SEC
Oct 23, 2026·SEC
Jul 30, 2026·SEC
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LKQ Corporation (LKQ) stock FAQ — growth, dividends, profitability & financials explained
LKQ Corporation (LKQ) reported $13.51B in revenue over the trailing twelve months. Revenue was $13.92B in fiscal year 2025. That is 6049% more than the $226.3M of fiscal year 2000.
LKQ Corporation (LKQ) revenue fell by 3.2% over the trailing twelve months, compared with the twelve months before.
Yes. LKQ Corporation (LKQ) earned $255.0M in net income over the trailing twelve months (a 1.9% net margin).
Yes. LKQ Corporation (LKQ) pays a dividend that yields 6.04% at the current price, a high yield.
LKQ Corporation (LKQ) had a return on equity (ROE) of 3.9% over the trailing twelve months. That is below the market's typical 10-15%.
LKQ Corporation (LKQ) generated $610.0M in free cash flow over the trailing twelve months.
