Is LKQ (LKQ) Stock Undervalued Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.LKQ (LKQ) is a stock many investors are watching right now. LKQ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.17. This compares to its industry's average Forward P/E of 12.09. Over the past 52 weeks, LKQ's Forward P/E has been as high as 12.81 and as low as 9.27, with a median of 10.43.Investors should also recognize that LKQ has a P/B ratio of 1.59. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.06. Within the past 52 weeks, LKQ's P/B has been as high as 2.31 and as low as 1.50, with a median of 1.78.Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LKQ has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.08.Finally, we should also recognize that LKQ has a P/CF ratio of 9.01. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. LKQ's P/CF compares to its industry's average P/CF of 12.72. Over the past 52 weeks, LKQ's P/CF has been as high as 12.09 and as low as 8.51, with a median of 9.59.These figures are just a handful of the metrics value investors tend to look at, but they help show that LKQ is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LKQ feels like a great value stock at the moment.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LKQ Corporation (LKQ): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks