Top 10 Auto Parts Stocks That Could Surge On Trump’s Auto Tariff Relaxation

3. LKQ Corporation (NASDAQ:LKQ)

LKQ Corporation operates as a distributor of components, replacement parts, and systems used in the maintenance and repair of specialty vehicle aftermarket products and vehicles. It operates in Europe, Self-Service, Wholesale-North America, and Specialty segments. Despite the fact that stock surged over 14% this year, it is still trading 13% below the lowest Wall Street price target of $48.

Q4 2024 proved to be a weak quarter for the company as the revenue declined by 4.1% YoY, missing analyst estimates. However, share repurchases worth $80 million and a free cash flow of $149 million for the quarter meant there wasn’t much for shareholders to worry about.

In 2025, the company expects free cash flow to come in between $750 million and $900 million on an EPS of $3.4 to $3.7. Revenue from North America is expected to stay flat while Europe could show minimal growth. LKQ continues to be a shareholder-friendly company after executing healthy dividends and share repurchases in 2024 and divesting five low-margin businesses in Europe, bringing in $153 million.