Why LKQ Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, vehicle replacement parts distributor LKQ (Nasdaq: LKQ  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at LKQ and see what CAPS investors are saying about the stock right now.

LKQ facts

Headquarters (founded)

Chicago (1998)

Market Cap

$6.5 billion

Industry

Distributors

Trailing-12-Month Revenue

$4.0 billion

Management

CEO Robert Wagman (since January 2012)

CFO John Quinn (since November 2009)

Return on Equity (average, past 3 years)

13.8%

Cash/Debt

$69.2 million / $999.2 million

Competitors

Fastenal

Genuine Parts Company

O'Reilly Automotive

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 405 members who have rated LKQ believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, TMFnoceilings, succinctly summed up the bull case for our community:

When I think about LKQ, I picture someone sitting at a wrecked-car auction, frantically typing makes and models into a state-of-the-art tablet computer, which in turn spits back a maximum bid number based on everything from current inventory levels to historical sales numbers for that particular model.

In other words: I think about a company that's bringing a lot of forward-looking strategy to an otherwise rust-caked industry. LKQ's technological bent, coupled with its prescient push toward industrywide consolidation, gets me all revved up.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, LKQ may not be your top choice.

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