Genuine Parts (GPC) closed at $159.67 in the latest trading session, marking a -1.13% move from the prior day. This change lagged the S&P 500’s 0.77% loss on the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 2.23%.
Heading into today, shares of the auto and industrial parts distributor had gained 1.85% over the past month, lagging the Auto-Tires-Trucks sector’s gain of 20.51% and the S&P 500’s gain of 4.66% in that time.
Wall Street will be looking for positivity from Genuine Parts as it approaches its next earnings report date. In that report, analysts expect Genuine Parts to post earnings of $2.31 per share. This would mark year-over-year growth of 5%. Meanwhile, our latest consensus estimate is calling for revenue of $5.93 billion, up 5.93% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.07 per share and revenue of $23.4 billion, which would represent changes of +8.75% and +5.89%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Genuine Parts. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. 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 17.8. This represents a premium compared to its industry’s average Forward P/E of 15.52.
Investors should also note that GPC has a PEG ratio of 2 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Automotive – Replacement Parts stocks are, on average, holding a PEG ratio of 1.67 based on yesterday’s closing prices.
The Automotive – Replacement Parts industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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