Genuine Parts Hits 52-Week High: What's Behind The Rally?
Zacks Investment Research | Apr 08, 2019 08:13AM ET
Shares of Genuine Parts Company (NYSE:GPC) scaled a fresh 52-week high of $115.20 on Apr 8, before closing the day at $115.14.
The company has a market cap of roughly $16.8 billion. Its expected long-term earnings per share growth rate is pegged at 5.2%, lower than the industry average of 11.4%.
Genuine Parts’ shares gained 21% in the last three months, outperforming the industry ’s growth of 17.6%.
Driving Factors
Value-added services and frequent investments and acquisitions contributed to rally of the stock.
Value-added services, targeting existing and new customers, are paying off. Also, the company has been able to enhance product offerings and expand geographical footprint through industrial and automotive acquisitions.
In February 2019, it inked a definitive agreement to acquire Axis New England and Axis New York. The new company will be added to Genuine Parts’ Industrial segment, which operates under the name, Motion Industries. The newly added company is projected to contribute $55 million in estimated annual revenues.
In fourth-quarter 2018, Genuine Parts reported net sales of $4.6 billion, up 9% year over year. The figure was almost in line with the Zacks Consensus Estimate. Total sales included 4.6% comparable growth, 6% from acquisitions and 1.2% adverse impact of the foreign currency translation.
Zacks Rank & Stocks to Consider
Genuine Parts currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Ferrari N.V. (NYSE:RACE) , General Motors Company (NYSE:GM) and Fox Factory Holding Corp. (NASDAQ:FOXF) , each currently carrying a Zacks Rank #2 (Buy). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.