Genuine Parts Company (GPC): Wholesale's Featured Underachiever Of The Day

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 up 0.3%. By the end of trading, Genuine Parts Company fell $1.06 (-1.4%) to $76.34 on average volume. Throughout the day, 855,192 shares of Genuine Parts Company exchanged hands as compared to its average daily volume of 765,800 shares. The stock ranged in price between $76.21-$77.98 after having opened the day at $77.78 as compared to the previous trading day's close of $77.40. Other companies within the Wholesale industry that declined today were: Bluelinx Holdings ( BXC), down 4.8%, InfoSonics Corporation ( IFON), down 4.4%, MSC Industrial Direct ( MSM), down 2.9%, and W.W. Grainger ( GWW), down 2.6%.
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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, the Dominican Republic, Mexico, and Canada. Genuine Parts Company has a market cap of $11.87 billion and is part of the services sector. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 21.4% year to date as of the close of trading on Friday. Currently there are three analysts that rate Genuine Parts Company a buy, one analyst rates it a sell, and four 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, solid stock price performance, impressive record of earnings per share growth, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Armco Metals Holdings ( CNAM), up 11.1%, Navarre Corporation ( NAVR), up 8.7%, China Auto Logistics ( CALI), up 6.5%, and SED International Holdings ( SED), up 4.5%, 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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