LKQ Stock On The Verge Of Doubling Yet Again

The first and only time we wrote about LKQ (NASDAQ:) was in late-September, 2020. The stock had just doubled from its coronavirus plunge and was hovering around $27. Despite the recent strength, however, we thought the shares still present a good investment.

In a time of crisis one cannot rely on charts alone, so the company’s stable financials helped, as well. The main reason for us liking LKQ, though, was the textbook Elliott Wave pattern that was visible on its weekly chart. Take a look.

LKQ Weekly Chart

It took 17 year for LKQ stock to draw a complete 5-3 wave cycle on its weekly chart. Fortunately, we thought it was “going to take a lot less than that for LKQ to reach $44 again.” Last week, the stock closed above the $50 mark, up 87% since we wrote about it.

LKQ Weekly Chart

In hindsight, the bears never stood a chance. One can hardly find an asset whose price has gone down over the past ten months and LKQ stock is no exception. But at the time of writing, that surge was far from certain. In fact, health experts correctly predicted that the COVID-19 situation was going to get a lot worse. Yet, the stock market just kept climbing, taking LKQ with it.

And while stocks in general seem extremely overvalued, LKQ is trading at a mere 16 forward P/E ratio. We believe the easy money has been made already, but this in no way means it is time to bet against the stock. The bulls remain in charge for now and trying to pick a top is never worth the risk.

Original Post

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a comment

Send a Comment

Your email address will not be published.

Enter text shown below: