Genuine Parts Company Stock: Is Wall Street Bullish or Bearish?

Genuine Parts Company (GPC) is a leading consumer discretionary enterprise within the auto parts industry, headquartered in Atlanta, Georgia. Its market capitalization stands at $19.4 billion, reflecting its enduring position as a major player in both automotive and industrial replacement parts distribution.

The company operates two core segments - Automotive Parts Group and Industrial Parts Group – offering extensive product and service lines across vehicles, industrial machinery, and equipment sectors, while boasting a global footprint.

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Shares of the auto part company have delivered a strong year-to-date (YTD) return of 19.3%, significantly outpacing the broader S&P 500 Index’s ($SPX) gain of 9.5%, signaling notable relative strength in 2025. However, over the past 52 weeks, GPC stock has underperformed, declining 2.1%, in contrast to the SPX’s 14.3% surge.

Narrowing the focus, the stock has outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 3.7% returns on a YTD basis. However, XLY has gained 23.8% over the past year, surging past GPC’s dip over the same stretch.www.barchart.com

In 2025, Genuine Parts has seen renewed investor optimism, fueled by stronger-than-expected quarterly results and improved momentum. In its Q2 earnings report, released on July 22, the company’s sales grew 3.4% year-over-year (YoY) to $6.2 billion, driven by acquisitions and modest comparable sales growth.

Its adjusted EPS amounted to $2.10, compared to $2.44 in the year-ago quarter, but surpassed the consensus estimate, generating a positive market reaction and a sharp stock rally.

Nevertheless, the stock has been riding a wave of volatility, weighed down by softer guidance and lingering macroeconomic headwinds, including tariff concerns. Management trimmed its 2025 outlook, now projecting revenue growth of 1% to 3%, down from the earlier 2% to 4% range. Similarly, adjusted EPS guidance was lowered, estimated to be between $7.50 and $8.00, compared to the previous $7.75 to $8.25 range. The tempered projections hint at management’s cautious stance amid an uncertain economic backdrop, adding pressure to investor sentiment.

For the current fiscal year, ending in December 2025, analysts expect Genuine Parts to report an EPS of $7.67 on a diluted basis, declining 6% YoY. The company has a history of surpassing consensus EPS estimates. It has topped the Street’s bottom-line estimates in three out of the past four quarters, while missing on one other occasion.

Story Continues

Overall, Wall Street remains upbeat yet measured, maintaining a consensus “Moderate Buy” rating. Of the 12 analysts offering recommendations, five are bullish, advising a “Strong Buy,” six analysts are playing it safe, recommending a “Hold” rating, and one gives a “Strong Sell” rating.www.barchart.com

The current configuration has remained largely consistent over the past few months.

After GPC’s Q2 earnings, Loop Capital’s Chris Dankert lifted the price target to $160, maintaining a “Buy.” Genuine Parts trimmed 2025 guidance, citing tariffs and a slower auto recovery, but the reduction was softer than Wall Street braced for. With cost discipline, M&A gains, and organic growth fueling margins, Loop views GPC as undervalued and ready to thrive if inflation rekindles.

GPC is currently trading slightly above its average analyst price target of $139. But Loop Capital's Street-high target price of $160 suggests the stock can still rise by 14.9% from the current price levels.

On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

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