Genuine PartsNYSE: GPC

Evaluating the risks and rewards is important when investing in stocks. The recent 20% decline in Genuine Parts Company's value calls for a reassessment of its investment potential. Since GPC is a slow-growing company, it should only be purchased at a significant discount for possible short-term gains, rather than as a long-term investment.

The company's shares dropped after it reduced its earnings forecasts for 2024.

Genuine Parts Company saw a notable 20% decrease in its stock price, currently valued at less than 12.2 times its normalized price-to-earnings ratio, with a yield exceeding 3.53%. Even with this decline, the company is a stable business that has been around for almost 100 years, holds a BBB rating, and has a market cap of over $15 billion, indicating it is not at risk of bankruptcy. The drop was caused by the results from the third quarter of 2024, but the company's strong fundamentals in automotive and industrial replacement parts suggest there may be potential for recovery.

Genuine Parts had disappointing results in the third quarter, which caused them to lower their forecasts significantly. However, sales are starting to stabilize, and their gross margin has improved. Due to potential mergers and acquisitions, a lower valuation, and the increasing age of car fleets, GPC is considered a good investment.

While the revenue and earnings per share (EPS) for Genuine Parts (GPC) provide insight into its performance for the quarter ending September 2024, it could be helpful to look at how these important figures stack up against Wall Street predictions and last year's results.

The stock prices of the auto parts company dropped after a disappointing earnings report was released.

Genuine Parts Company (NYSE:GPC) will hold its Q3 2024 Earnings Conference Call on October 22, 2024, at 8:30 AM ET. The call will feature company representatives including Tim Walsh, Will Stengel, and Bert Nappier, along with participants from various financial institutions. The operator will welcome everyone to the call.

Genuine Parts (GPC) reported quarterly earnings of $1.88 per share, which is lower than the Zacks Consensus Estimate of $2.44 per share. This is a decrease compared to earnings of $2.49 per share from the same period last year.

Genuine Parts Co. saw its shares drop by 10.1% in premarket trading after the company announced third-quarter earnings that were below expectations and revised its outlook downwards, pointing to weak market conditions.