Stocks to Buy – April 20th – Vehicle Repair Provider Profits from Recession
In the first installment of stocks to buy we are suggesting a vehicle repair provider that is set to profit from the current recession. Back on February 27th, I picked LKX Corporation (LKQX) as one of my three March stock picks. Since then, LKQX has seen a steady rise of 21.8% in the last month and a half. Many of you may feel that the stock is overbought which may very well be the case, but for the long run, this stock should continue to see profits.
At a time when Americans are not buying new cars, they need somewhere to go to get used car parts. LKQX is the vehicle repair provider for many Americans. LKQX makes it easy by letting their customers walk around a “junk yard” and pick out the parts they need. This will be commonplace in America in the years to come as many car owners will do their best to keep their current car running rather than buying new.
Even if the economy turns around, LKQX is still positioned to profit. We all know how bad the big three carmakers are struggling. To ensure their existence as a company, the big three are cost cutting in excess amounts. Many of their vehicles are not being built to the same high standards they used to be. This is great news for LKQX as those few vehicles that are being bought today will need repairs sooner rathen than later. Either way, LKQX is the one of the great American stocks to buy.