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 up 0.3%. By the end of trading, Genuine Parts Company fell $1.06 (-1.3%) to $78.53 on average volume. Throughout the day, 1,097,532 shares of Genuine Parts Company exchanged hands as compared to its average daily volume of 826,100 shares. The stock ranged in price between $78.34-$80.17 after having opened the day at $79.83 as compared to the previous trading day's close of $79.59. Other companies within the Wholesale industry that declined today were: Shengkai Innovations ( VALV), down 7.5%, Taitron Components Inc. Class A ( TAIT), down 6.7%, Global Partners ( GLP), down 5.0% and Louisiana-Pacific ( LPX), down 1.8%.
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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 $12.7 billion and is part of the services sector. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 28.8% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Genuine Parts Company a buy, 1 analyst rates it a sell, and 4 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, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Armco Metals Holdings ( CNAM), down 6.5%, Aegean Marine Petroleum Network ( ANW), down 6.1%, Coast Distribution System ( CRV), down 3.6% and Magna International ( MGA), down 2.9% , were all gainers within the wholesale industry with Cardinal Health ( CAH) 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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