Here's Why Genuine Parts (GPC) is a Strong Value Stock

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

Genuine Parts (GPC)

Atlanta-based Genuine Parts distributes automotive and industrial replacement parts and materials. As of Dec 31, 2021, the company had a network of more than 10,000 locations across 15 countries and network of more than 10,000 locations in 15 countries and employed approximately 52,000 people worldwide.

GPC is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 16.8X for the current fiscal year compared to the Automotive - Replacement Parts industry's P/E of 16.3X. Additionally, GPC has a PEG Ratio of 3 and a Price/Cash Flow ratio of 14.6X. Value investors should also note GPC's Price/Sales ratio of 1X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.04 to $7.85 per share. GPC has an average earnings surprise of 11.3%.

GPC should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.


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