What 9 Analyst Ratings Have To Say About Genuine Parts

Providing a diverse range of perspectives from bullish to bearish, 9 analysts have published ratings on Genuine Parts GPC in the last three months.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $157.0, along with a high estimate of $165.00 and a low estimate of $145.00. This current average has decreased by 4.72% from the previous average price target of $164.78.

Deciphering Analyst Ratings: An In-Depth Analysis

In examining recent analyst actions, we gain insights into how financial experts perceive Genuine Parts. The following summary outlines 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: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Genuine Parts's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Genuine Parts analyst ratings.

Delving into Genuine Parts's Background

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 more than 200,000 maintenance, repair, and original equipment manufacturer clients.

Breaking Down Genuine Parts's Financial Performance

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.

Positive Revenue Trend: Examining Genuine Parts's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.8% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Genuine Parts's net margin is impressive, surpassing industry averages. With a net margin of 4.96%, 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 6.61% 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 1.59%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Genuine Parts's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.14, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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