Is LKQ Corp’s Run Finally Over?January 21, 2014
LKQ is up nearly 180% over the past four years for an impressive 100% greater gain than the MSCI World during that time. However, the stock has shown some distribution problems recently as it has underperformed the MSCI World index by nearly 20% over the past 3 moths (-15.8% nominal decline). That brings us to today, where LKQ is down another 7% so far. Is it reasonably to read this as a sign that the entire index is extended because prior stock leadership is now strongly underperforming? Time will tell.