Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Genuine Parts as such a stock due to the following factors:
- GPC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.6 million.
- GPC has traded 6,738 shares today.
- GPC is trading at a new lifetime high.
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More details on GPC:
Genuine Parts Company distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, the Dominican Republic, Mexico, and Canada. The stock currently has a dividend yield of 2.5%. GPC has a PE ratio of 20.7. Currently there are 2 analysts that rate Genuine Parts a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Genuine Parts has been 568,700 shares per day over the past 30 days. Genuine Parts has a market cap of $14.3 billion and is part of the services sector and specialty retail industry. The stock has a beta of 0.78 and a short float of 3.7% with 6.74 days to cover. Shares are up 12% year-to-date as of the close of trading on Monday.
rates Genuine Parts as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- GENUINE PARTS CO has improved earnings per share by 10.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GENUINE PARTS CO increased its bottom line by earning $4.41 versus $4.15 in the prior year. This year, the market expects an improvement in earnings ($4.60 versus $4.41).
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.5%. Since the same quarter one year prior, revenues slightly increased by 8.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GPC's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that GPC's debt-to-equity ratio is low, the quick ratio, which is currently 0.58, displays a potential problem in covering short-term cash needs.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Distributors industry average. The net income increased by 9.7% when compared to the same quarter one year prior, going from $173.75 million to $190.52 million.
- You can view the full Genuine Parts Ratings Report.