Decoding 5 Analyst Evaluations For Genuine Parts

5 analysts have expressed a variety of opinions on Genuine Parts GPC over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Genuine Parts, presenting an average target of $158.8, a high estimate of $165.00, and a low estimate of $150.00. This current average represents a 4.68% decrease from the previous average price target of $166.60.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Genuine Parts is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Genuine Parts compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Genuine Parts's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Genuine Parts's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Genuine Parts analyst ratings.

Get to Know Genuine Parts Better

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 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 over 200,000 maintenance, repair, and original equipment manufacturer clients.

Financial Milestones: Genuine Parts's Journey

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Over the 3 months period, Genuine Parts showcased positive performance, achieving a revenue growth rate of 0.32% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Genuine Parts's net margin is impressive, surpassing industry averages. With a net margin of 4.3%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Genuine Parts's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.65%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Genuine Parts's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.37%, the company showcases efficient use of assets and strong financial health.

Debt Management: Genuine Parts's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.12, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Significance of Analyst Ratings Explained

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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