Genuine Parts Company (GPC): Today's Featured Wholesale Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Genuine Parts Company ( GPC) pushed the Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Genuine Parts Company fell $1.07 (-1.7%) to $62.09 on average volume. Throughout the day, 801,471 shares of Genuine Parts Company exchanged hands as compared to its average daily volume of 856,700 shares. The stock ranged in price between $61.85-$62.99 after having opened the day at $62.99 as compared to the previous trading day's close of $63.16. Other companies within the Wholesale industry that declined today were: China Auto Logistics ( CALI), down 7.4%, VOXX International ( VOXX), down 5.6%, Beacon Roofing Supply ( BECN), down 5.4%, and Commercial Vehicle Group ( CVGI), down 4.5%.
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Genuine Parts Company distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, Canada, and Mexico. Genuine Parts Company has a market cap of $9.77 billion and is part of the services sector. The company has a P/E ratio of 16.5, equal to the average wholesale industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 3.2% year to date as of the close of trading on Friday. Currently there are no analysts that rate Genuine Parts Company a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Genuine Parts Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Armco Metals Holdings ( CNAM), up 13.2%, Hudson Technology ( HDSN), up 9.1%, InfoSonics Corporation ( IFON), up 4.3%, and Edgen Group Inc Class A ( EDG), up 3.7%, were all gainers within the wholesale industry with AmerisourceBergen ( ABC) being today's featured wholesale industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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