Neharika Jain
2 min read
In This Article:
Atlanta, Georgia-based Genuine Parts Company (GPC) is a global distributor of automotive replacement parts and industrial supplies. Valued at a market cap of $16.5 billion, the company offers a broad range of products, including brakes, batteries, fluid power equipment, and abrasives, along with value-added services such as paint mixing, hose assembly, and inventory management.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and GPC fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the auto parts industry. The company benefits from its diversified business model across automotive and industrial parts distribution, which provides revenue stability and resilience across economic cycles. Its flagship NAPA Auto Parts brand and Motion Industries platform give it strong market leadership in North America, while its extensive global footprint enables scale advantages and efficient supply chain management.
This auto parts company has slipped 20.3% from its 52-week high of $149.22, reached on Aug. 1, 2024. Shares of GPC have fallen 4.1% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 11.7% uptick during the same time frame.
Moreover, in the longer term, GPC has declined 14.7% over the past 52 weeks, underperforming NASX’s 9.4% rise over the same time frame. Nonetheless, on a YTD basis, shares of GPC are up 1.8%, outpacing NASX’s 1.2% return.
To confirm its bearish trend, GPC has been trading below its 200-day moving average over the past year, with minor fluctuations, and has recently started trading below its 50-day moving average.
On Apr. 22, shares of GPC surged 2.8% after its Q1 earnings release. The company reported a revenue of $5.9 billion, up 1.4% year-over-year, driven by contributions from acquisitions, though partially offset by a decline in comparable sales. The top-line figure marginally surpassed the consensus estimates. Moreover, while its adjusted EPS of $1.75 fell 21.2% from the year-ago quarter, it came in 5.4% above the analyst estimates. Despite the tariffs and trade dynamics, GPC delivered a better-than-expected performance, which might have impressed the investors. Looking ahead to fiscal 2025, the company reaffirmed its guidance, forecasting sales growth of 2% to 4%, and adjusted earnings between $7.75 and $8.25 per share.
