6 Analysts Assess Genuine Parts: What You Need To Know

Providing a diverse range of perspectives from bullish to bearish, 6 analysts have published ratings on Genuine Parts (NYSE:GPC) in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	1	2	2	0	1
Last 30D	0	1	0	0	0
1M Ago	0	1	1	0	1
2M Ago	0	0	0	0	0
3M Ago	1	0	1	0	0

Analysts have recently evaluated Genuine Parts and provided 12-month price targets. The average target is $127.5, accompanied by a high estimate of $135.00 and a low estimate of $114.00. This current average has decreased by 1.67% from the previous average price target of $129.67.

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive Genuine Parts. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Greg Melich |Evercore ISI Group |Lowers |Outperform | $130.00|$135.00 | |Greg Melich |Evercore ISI Group |Raises |Outperform | $135.00|$128.00 | |Greg Melich |Evercore ISI Group |Raises |In-Line | $128.00|$125.00 | |Kate McShane |Goldman Sachs |Lowers |Sell | $114.00|$133.00 | |Scot Ciccarelli |Truist Securities |Raises |Buy | $133.00|$129.00 | |Greg Melich |Evercore ISI Group |Lowers |In-Line | $125.00|$128.00 |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Genuine Parts. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Genuine Parts compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Genuine Parts's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Genuine Parts's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Genuine Parts analyst ratings.

Unveiling the Story Behind Genuine Parts

Genuine Parts sells aftermarket automotive parts (about 60% of sales) and industrial products (40% of sales) in the United States and internationally. The automotive segment primarily acts as a distributor to its network of 9,800 global retail locations of which about two thirds are independently owned and operated. We estimate Genuine serves around 6,000 retail locations in the US operating under the Napa Auto Parts brand, with about 80% of end market sales derived from professional customers. Its industrial segment, primarily operating under the Motion banner in the United States, serves as a leading distributor of bearings, power transmission, and other industrial products to more than 200,000 maintenance, repair, and original equipment manufacturer customers.

Genuine Parts's Economic Impact: An Analysis

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining Genuine Parts's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.3% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Genuine Parts's net margin is impressive, surpassing industry averages. With a net margin of 2.31%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Genuine Parts's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.95% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Genuine Parts's ROA stands out, surpassing industry averages. With an impressive ROA of 0.67%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.32, caution is advised due to increased financial risk.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Breaking: Wall Street's Next Big Mover

Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.

This article was generated by Benzinga's automated content engine and reviewed by an editor.