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Genuine Parts (GPC) Gains But Lags Market: What You Should Know

In the latest trading session, Genuine Parts (GPC) closed at $152.30, marking a +0.2% move from the previous day. This change lagged the S&P 500's 0.24% gain on the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.73%.

Coming into today, shares of the auto and industrial parts distributor had lost 11.94% in the past month. In that same time, the Auto-Tires-Trucks sector gained 12.5%, while the S&P 500 gained 3.56%.

Wall Street will be looking for positivity from Genuine Parts as it approaches its next earnings report date. On that day, Genuine Parts is projected to report earnings of $2.30 per share, which would represent year-over-year growth of 4.55%. Meanwhile, our latest consensus estimate is calling for revenue of $5.93 billion, up 5.83% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.06 per share and revenue of $23.39 billion. These totals would mark changes of +8.63% and +5.85%, respectively, from last year.

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Investors should also note any recent changes to analyst estimates for Genuine Parts. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Genuine Parts is currently a Zacks Rank #2 (Buy).

In terms of valuation, Genuine Parts is currently trading at a Forward P/E ratio of 16.77. For comparison, its industry has an average Forward P/E of 15.75, which means Genuine Parts is trading at a premium to the group.

Also, we should mention that GPC has a PEG ratio of 1.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Replacement Parts industry currently had an average PEG ratio of 1.67 as of yesterday's close.

The Automotive - Replacement Parts industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Genuine Parts Company (GPC) : Free Stock Analysis Report

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