11 Oversold Global Stocks to Buy According to Hedge Funds

5. LKQ Corporation (NASDAQ:LKQ)

RSI: 34.97

Number of Hedge Fund Holders: 40

​​LKQ Corporation (NASDAQ:LKQ) is a global distributor of alternative and specialty automotive parts, providing recycled, aftermarket, refurbished, and remanufactured components for vehicles. The company serves a diverse customer base, including collision and mechanical repair shops, dealerships, and retail consumers across North America, Europe, and Taiwan.

LKQ Corporation (NASDAQ:LKQ) posted mixed Q1 2025 results as revenue softness in North America and Europe was partially offset by operational cost savings and share repurchases. North American organic revenue fell 4.1% due to declining repairable claims driven by higher insurance premiums and falling used car prices, though the company outperformed the market by 570 basis points, signaling share gains. European revenues also declined, impacted by weak consumer sentiment and unseasonably mild weather. Management highlighted productivity efforts, SKU rationalization, and improved private label penetration as ways to maintain margin stability, especially in Europe.

Tariffs are a growing concern, particularly for LKQ Corporation (NASDAQ:LKQ)’s collision parts sourced from Asia, although recycled parts (a strength of LKQ) may see increased demand as price competitiveness becomes more pronounced. Specialty segment sales continued to struggle due to inflation and weaker discretionary consumer spending. Management remains committed to a simplification strategy, including recent divestitures and operational streamlining. With a tariff task force in place, LKQ aims to mitigate supply chain risks and protect margins through lean management, vendor negotiations, and pricing power where possible, securing its fifth place on our list of oversold stocks to buy.