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GPC

Genuine Parts Co. to release fourth-quarter numbers February 21

What's Happening

Auto parts retailer Genuine Parts Co. ( GPC ) is scheduled to release its fourth-quarter numbers before the market open February 21. The consensus calls for earnings of $1.01 per share on revenue of $3.77 billion. The stock has risen 3.8% on the year.

Technical Analysis

GPC was recently trading at $99.23, down $6.74 from its 12-month high and $12.62 above its 12-month low. Technical indicators for GPC are bullish with a weak upward trend. The stock has recent support above $95.80, and has resistance below $100.60. Of the seven analysts who cover the stock, one rates it a "strong buy", five rate it a "hold", and one rates it a "sell". The stock receives S&P Capital IQ's 3 STARS "Hold" ranking.

Analyst's Thoughts

GPC shares took a big hit following a disappointing quarterly report in October, but shares have recovered ther previous losses, and the stock is once again trading above where it was prior to the October report. The big sell off following the disappointing report definitely creates a reason to be concerned about the stock heading into the fourth-quarter release, and a good reason for investors to have an exit plan in place just in case we see another post-earnings sell off in the stock. The street appears to have a bullish outlook on the quarter, with a whisper number of $1.02 for the quarter, a penny above the consensus. The stock has a reasonable valuation, with a P/E of 21.5, but analysts expect earnings to fall by 1.1% this year, before rising 7.2% next year. The earnings drop has already been priced into the stock, so as long as the company's quarterly numbers are in-line or better than the street's estimates, the stock should build on its recent gains. Also look for the company to announce its next dividend increase, which would extend its streak of annual increases to a very impressive 61 years.

Stock Only Trade

Bullish Trade

There are no bullish hedged trades we like on the stock at this time.

Bearish Trade

There are no bearish hedged trades we like on the stock at this time.

Covered Call Trade

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Originally published on InvestorsObserver.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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