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Valued at a market cap of $16.7 billion, Genuine Parts Company (GPC) is a global service provider of automotive and industrial replacement parts and value-added solutions. Based in Atlanta, Georgia, the company operates in two segments: Automotive Parts Group and Industrial Parts Group.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks and Genuine Parts Company fits this criterion perfectly. The company distributes the parts from an extensive network of more than 10,700 locations in 17 countries, supported by more than 63,000 employees.
The auto and industrial parts distributor has fallen 26.6% from its 52-week high of $164.45. Over the past three months, shares of GPC have increased 2.9%, outpacing the S&P 500 Index’s ($SPX) 4.5% decrease.
On a YTD basis, Genuine Parts Company has surged 3.4%, outperforming the SPX’s 1.9% decline during the same time period. However, over the last 52 weeks, GPC has crumbled 22.6%, underperforming the S&P 500, nearly gaining 10.2%.
Despite a few fluctuations, the stock has been trading below its 50-day and 200-day moving averages since last year.
Despite reporting better-than-expected Q4 2024 sales of $5.8 billion and an adjusted EPS of $1.61, GPC shares fell 2.6% on Feb. 18. The company issued disappointing guidance for 2025, projecting adjusted EPS between $7.75 and $8.25, below analysts’ forecast. Investor sentiment turned negative due to a 50-basis-point drop in gross profit margin from an inventory write-down and weak full-year sales growth of just 1.7%.
Additionally, management warned of a significant future charge tied to the planned U.S. pension plan termination, further weighing on the stock.
Further, in comparison, rival Autoliv, Inc. (ALV) has lagged behind GPC. Shares of ALV are down 25.3% over the past 52 weeks and also decreased 1.6% on a YTD basis.
While the stock has underperformed the broader market over the past year, analysts are moderately optimistic about its prospects. GPC has a consensus rating of “Moderate Buy” from the 11 analysts covering the stock. As of writing, GPC is trading below the mean price target of $131.11.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
