Kettle Hill Capital Management bought $35 million of LKQ stock during the third quarter.Kettle Hill Capital Management, LLC initiated a new position in LKQ (LKQ +2.78%), acquiring 1,163,355 shares valued at approximately $35.53 million, according to its November 13, 2025, SEC filing.What HappenedKettle Hill Capital Management, LLC disclosed a new position in LKQ, purchasing 1,163,355 shares valued at $35.53 million as of September 30, 2025, according to its SEC filing dated November 13, 2025. The addition a ...

Guardian Wealth Management raised its stake in LKQ stock to nearly $4.9 Million during the third quarter of 2025.Guardian Wealth Management, Inc. increased its holding in LKQ (LKQ +7.21%) by 77,245 shares during the quarter ended September 30, 2025, adding an estimated $1.83 million in position value.What HappenedGuardian Wealth Management, Inc. reported a purchase of 77,245 shares in LKQ in its quarterly 13F filing, disclosed November 14, 2025 (SEC filing). The post-trade stake stands at 159,199 shares, wo ...

Thompson, Siegel, & Walmsley (TSW) has held LKQ since 2018 and has continually added to its position over time.On Nov. 12, 2025, Thompson, Siegel, & Walmsley LLC disclosed a significant purchase of LKQ, increasing its position by 1,470,033 shares, adding approximately $31.47 million.What happenedAccording to a Securities and Exchange Commission (SEC) filing dated Nov. 12, 2025, Thompson, Siegel, & Walmsley (TSW) increased its stake in LKQ Corporation (LKQ 0.92%) by 1,470,033 shares during the third quarter. ...

Core Insights - The Zacks Automotive Replacement Parts industry is facing challenges due to the increasing complexity of modern vehicles, which require specialized tools and expertise, leading to higher service costs and profitability pressures from U.S. import tariffs on parts sourced from China and Europe. However, the aging vehicle fleet in the U.S. is driving demand for maintenance and replacement components, benefiting companies like LKQ Corporation, Dorman Products, and Standard Motor Products [1][5]. Industry Overview - The industry includes companies that produce, market, and distribute replacement components for the automotive aftermarket, offering essential parts such as engine, steering, and brake components. The market is less sensitive to economic downturns as consumers prioritize vehicle maintenance over new purchases [2]. Factors Shaping Industry Prospects - Rising vehicle complexity is straining the aftermarket, requiring specialized skills and tools, which can lead to longer service times and increased costs for suppliers [3]. - Manufacturers face cost pressures due to high U.S. import tariffs, with many producing only about half of their parts domestically, leading to potential price increases for consumers [4]. - The average vehicle age in the U.S. has risen to 12.8 years in 2025, up from 12.6 years in 2024, sustaining strong demand for replacement parts as owners delay new purchases [5]. Industry Performance - The Zacks Automotive Replacement Parts industry ranks 183, placing it in the bottom 24% of around 250 Zacks industries, indicating weak near-term prospects with a significant decline in earnings estimates for 2026 and 2027 [6][7]. Market Performance - The industry has underperformed compared to the Auto, Tires, and Truck sector and the S&P 500, declining 17.6% over the past year, while the sector grew by 14.1% and the S&P 500 returned 14.2% [9]. Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 7.47X, significantly lower than the S&P 500's 18.06X and the sector's 22.93X, indicating a potential undervaluation compared to historical highs of 12.15X and lows of 6.02X over the past five years [12]. Company Highlights - **Standard Motor Products (SMP)**: A leading manufacturer of automotive replacement parts, recently expanded through the acquisition of Nissens, expecting $8-$12 million in annualized cost savings. SMP has surpassed earnings estimates consistently, with a projected 20.9% growth in sales for 2025 [14][15]. - **LKQ Corporation**: A major provider of replacement parts, has strengthened its growth outlook through strategic acquisitions, including Uni-Select. The company has cut $125 million in costs and plans to reduce another $75 million [21][22]. - **Dorman Products**: A supplier of exclusive replacement parts, recently launched a revamped e-commerce platform to enhance customer experience and operational scalability. Dorman has also consistently surpassed earnings estimates, with a projected 8% growth in sales for 2025 [24][25].

Core Insights - Investors prioritize companies with consistent profitability, measured effectively by net profit margin, which reflects operational efficiency and management quality [1][2] Profitability Metrics - Net profit margin is calculated as Net profit divided by Sales multiplied by 100, indicating a company's ability to convert sales into profits [2] - A strong net profit margin suggests effective cost control and operational strength, essential for rewarding stakeholders and attracting investors [2] Industry Comparisons - Net profit margin varies across industries, complicating direct comparisons; it is crucial for traditional sectors but may be less relevant for technology firms [3] - Differences in accounting practices, particularly regarding non-cash expenses, further complicate comparisons [4] Investment Strategy - A healthy net profit margin and solid EPS growth are key elements sought in a business model, supplemented by additional criteria for maximizing returns [5] Screening Parameters - Criteria for screening include a net margin of at least 0%, positive percentage change in EPS, high broker ratings, and a favorable Zacks Rank [6] - Stocks with a VGM Score of A or B combined with a Zacks Rank of 1 or 2 are identified as having the best upside potential [7] Company Highlights - **SkyWest, Inc. (SKYW)**: Operates as a regional airline with a Zacks Rank of 1 and a VGM Score of A; 2025 earnings estimate revised upward by 3.8% to $10.33 per share [8] - **Interface, Inc. (TILE)**: Largest manufacturer of modular carpets, also holds a Zacks Rank of 1 and a VGM Score of A; 2025 earnings estimate revised to $1.85 per share from $1.70 [9] - **FreightCar America, Inc. (RAIL)**: Specializes in manufacturing railroad freight cars, currently has a Zacks Rank of 2 and a VGM Score of A; earnings estimate remained unchanged [10][11] - **Standard Motor Products, Inc. (SMP)**: Leading manufacturer of automotive replacement parts, holds a Zacks Rank of 2 and a VGM Score of A; 2025 earnings estimate revised upward by $0.04 to $3.80 per share [12][13]

Core Insights - PineStone Asset Management Inc. sold approximately $65.7 million worth of AutoZone shares in Q3, reducing its stake by 16,388 shares, while still holding 265,305 shares valued at $1.1 billion as of September 30 [2][7] Company Overview - AutoZone's stock price closed at $4,030.17, reflecting a 25% increase over the past year, outperforming the S&P 500's nearly 14% gain during the same period [3] - The company has a market capitalization of $67.4 billion, with a trailing twelve months (TTM) revenue of $18.9 billion and a net income of $2.5 billion [4] Business Model and Market Position - AutoZone operates as a leading retailer and distributor in the automotive aftermarket sector, offering a wide range of automotive replacement parts, maintenance items, and accessories [6][9] - The company serves a diverse customer base, including do-it-yourself consumers and professional automotive repair shops across the U.S., Mexico, and Brazil [9] Financial Performance - AutoZone reported a same-store sales growth of 5.1% and a full-year earnings per share (EPS) of $144.87, supported by a 14% increase in inventory to facilitate new store openings and commercial expansion [10] - The company continues to generate consistent cash flow and engages in share buybacks, which contribute to steady value creation [10]

Core Insights - The automotive aftermarket suppliers are currently facing challenges, despite consistent consumer demand for replacement parts [1] Industry Overview - The demand for replacement parts remains strong, indicating a stable market need [1] Company Analysis - The article does not provide specific company details or performance metrics related to individual automotive aftermarket suppliers [1]

Core Insights - LKQ Corporation has a market cap of $7.7 billion and is a leading distributor of automotive replacement, recycled, remanufactured, and specialty parts, serving various customers including repair shops and individual consumers [1][2] Company Overview - LKQ is classified as a "mid-cap" stock, with its market leadership attributed to a robust global distribution and logistics network that ensures high parts availability and quick delivery [2] - The company's diverse product portfolio includes aftermarket, recycled, remanufactured, and specialty parts [2] Stock Performance - LKQ shares have decreased by 33.1% from their 52-week high of $44.82 and have fallen 18.8% over the past three months, underperforming the Nasdaq Composite, which rose by 12.1% in the same period [3] - Year-to-date, LKQ stock is down 18.4%, lagging behind the Nasdaq Composite's 15.9% increase [4] - Over the past 52 weeks, LKQ shares have declined by 23.3%, while the Nasdaq Composite has seen a slight increase of 23.8% [4] Recent Financial Performance - On July 24, LKQ announced Q2 2025 earnings, revealing a 17.8% drop in shares following a lowered 2025 guidance due to weaker repairable claims in North America and challenging conditions in Europe [5] - The company expects adjusted EPS to be between $3.00 and $3.30, with a projected decline of 1.5% to 3.5% in organic parts and services revenue [5] - LKQ reported revenue of $3.6 billion, a decrease of 1.9% year-over-year, with organic parts and services revenue falling by 3.4% [5] - Adjusted EPS also fell by 11.2% to $0.87 [5] Competitive Landscape - In comparison, rival AutoZone, Inc. has performed better, with a year-to-date stock gain of 29.2% and a 33% return over the past 52 weeks [6]

Group 1 - AutoZone, Inc. is recognized for its aggressive stock buyback strategy, utilizing spare cash to repurchase shares, making it one of the most active buyback companies on the New York Stock Exchange [1] - The average age of vehicles on the road is increasing, leading to a higher demand for automotive replacement parts and maintenance, which AutoZone provides [1] - The availability of repair instructions on platforms like YouTube has made it easier for consumers to maintain their older vehicles, further driving demand for AutoZone's products [1] Group 2 - AutoZone sells and distributes a wide range of automotive replacement parts, maintenance items, and accessories for various types of vehicles, including cars, SUVs, vans, and light trucks [2] - The company also offers commercial programs and diagnostic software, expanding its service offerings beyond just retail [2]

Group 1 - AutoZone, Inc. is recognized for its significant stock buyback program, which has reduced its share count from approximately 31 million to less than 17 million over the past decade, reflecting a repurchase rate of about 6% annually [1] - The company is well-positioned during economic slowdowns as consumers tend to repair older vehicles instead of purchasing new ones, which drives demand for AutoZone's products [1] - AutoZone's stock is currently trading at 24 times earnings, and it has repurchased half of its float, indicating strong financial performance and shareholder value creation [2] Group 2 - Since the positive commentary from Jim Cramer, AutoZone's stock has appreciated by around 16% [2]