LKQ Corporation (LKQ) Fell Due to Lackluster Performance

Scout Investments, Inc., an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The Russell Midcap Index posted positive returns in the second quarter despite a sharp sell-off at the beginning of April following the liberation Day tariff announcement. However, the delay in collecting additional tariffs provided more time for trading partners to negotiate better terms. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Carillon Scout Mid Cap Fund highlighted stocks such as LKQ Corporation (NASDAQ:LKQ). LKQ Corporation (NASDAQ:LKQ) distributes vehicle products and parts to repair, maintain, and accessorize automobiles. The one-month return of LKQ Corporation (NASDAQ:LKQ) was 7.27%, and its shares lost 17.11% of their value over the last 52 weeks. On September 09, 2025, LKQ Corporation (NASDAQ:LKQ) stock closed at $32.31 per share, with a market capitalization of $8.313 billion.

Carillon Scout Mid Cap Fund stated the following regarding LKQ Corporation (NASDAQ:LKQ) in its second quarter 2025 investor letter:

"Aftermarket auto parts supplier LKQ Corporation (NASDAQ:LKQ) delivered lackluster performance. As the cost of repairing cars has increased, the number of cars that are being repaired, which is the source of demand for LKQ’s domestic operations, has declined. Bad weather in Europe and unclear messaging around the impact of tariffs also weighed on the stock following its first-quarter report. We believe the tariff fears will subside, and with management’s increased focus on execution and margin, earnings results should be more attractive going forward."

LKQ Corporation (NASDAQ:LKQ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held LKQ Corporation (NASDAQ:LKQ) at the end of the second quarter, which was 33 in the previous quarter. While we acknowledge the potential of LKQ Corporation (NASDAQ:LKQ) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered LKQ Corporation (NASDAQ:LKQ) and shared Artisan Mid Cap Value Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.