Genuine Stock Buy Hold or Sell Recommendation

GPC -  USA Stock  

USD 139.18  3.14  2.31%

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Genuine Parts is 'Strong Buy'. Macroaxis provides Genuine Parts buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding GPC positions. The advice algorithm takes into account all of Genuine Parts' available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Genuine Parts' buy-and-hold perspective. Please check Genuine Parts Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Genuine and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Genuine Parts.

Execute Genuine Parts Buy or Sell Advice

The Genuine recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Genuine Parts. Macroaxis does not own or have any residual interests in Genuine Parts or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Genuine Parts' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Genuine PartsBuy Genuine Parts
Strong Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Genuine Parts has a Risk Adjusted Performance of 0.1957, Jensen Alpha of 0.2303, Total Risk Alpha of 0.2307, Sortino Ratio of 0.129 and Treynor Ratio of 0.2463
Macroaxis provides investment recommendation on Genuine Parts to complement and cross-verify current analyst consensus on Genuine Parts. Our trade recommendations engine determines the entity's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Genuine Parts is not overpriced, please check out all Genuine Parts fundamentals, including its ebitda, current ratio, and the relationship between the price to sales and cash per share . Given that Genuine Parts has a price to earning of 22.92 X, we strongly advise you to confirm Genuine Parts market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Genuine Parts Trading Alerts and Improvement Suggestions

Genuine Parts has a strong financial position based on the latest SEC filings
Over 80.0% of the company shares are owned by institutional investors
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Genuine Parts current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Genuine analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Genuine analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price141.56
Target Median Price140.00
Target High Price157.00
Recommendation Mean2.80
Number Of Analyst Opinions9
Target Low Price130.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Genuine Parts Returns Distribution Density

The distribution of Genuine Parts' historical returns is an attempt to chart the future uncertainty of Genuine Parts' future price movements. The chart of the probability distribution of Genuine Parts stock daily returns describes the distribution of returns around its average expected value. We use Genuine Parts price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Genuine Parts returns is essential to provide solid investment advice for Genuine Parts stock.
Mean Return0.24Value At Risk-3.25
Potential Upside2.66Standard Deviation1.69
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Genuine Parts historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Genuine Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Genuine Parts is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Genuine Parts backward and forwards among themselves. Genuine Parts' institutional investor refers to the entity that pools money to purchase Genuine Parts' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Vanguard Group IncCommon Shares17.1 M2.2 B
Blackrock IncCommon Shares12.8 M1.6 B
State Street CorpCommon Shares7.7 M983.1 M
Charles Schwab Investment Management IncCommon Shares4.9 M612.5 M
Wells Fargo CompanyCommon Shares2.8 M356.6 M
Geode Capital Management LlcCommon Shares2.7 M345.1 M
Truist Financial CorpCommon Shares1.7 M210.6 M
Note, although Genuine Parts' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Genuine Parts Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(135.49 M)(212.12 M)(253.49 M)(135.44 M)(239.59 M)(245.89 M)
Depreciation Amortization and Accretion167.69 M227.58 M257.26 M272.84 M290.97 M257.1 M
Net Cash Flow or Change in Cash and Cash Equivalents72.02 M18.65 M(56.55 M)713.17 M(275.46 M)(282.71 M)
Net Cash Flow Business Acquisitions and Disposals(1.49 B)(257.82 M)(290.11 M)318.21 M(266.58 M)(287.62 M)
Issuance Purchase of Equity Shares(173.52 M)(91.98 M)(74.19 M)(96.22 M)(333.6 M)(342.38 M)
Issuance Repayment of Debt Securities1.45 B(59.97 M)139.4 M(895 M)(160.73 M)(164.96 M)
Payment of Dividends and Other Cash Distributions(395.48 M)(415.98 M)(438.89 M)(453.28 M)(465.65 M)(502.41 M)
Net Cash Flow from Financing872.06 M(608.83 M)(385.96 M)(1.51 B)(989.53 M)(1.02 B)
Net Cash Flow from Investing(1.63 B)(496.12 M)(563.21 M)171.64 M(506.16 M)(546.12 M)
Net Cash Flow from Operations815.04 M1.15 B892.01 M2.02 B1.26 B1.27 B
Effect of Exchange Rate Changes on Cash15.2 M(21.56 M)603 K35.74 M(38.05 M)(39.06 M)
Share Based Compensation13.76 M13.51 M23.78 M21.94 M18.52 M15.54 M

Genuine Parts Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Genuine Parts or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Genuine Parts stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Genuine stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.23
β
Beta against DOW0.93
σ
Overall volatility
1.68
Ir
Information ratio 0.14

Genuine Parts Volatility Alert

Genuine Parts has relatively low volatility with skewness of -0.49 and kurtosis of 0.31. However, we advise all investors to independently investigate Genuine Parts to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Genuine Parts' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Genuine Parts' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Genuine Parts Implied Volatility

Genuine Parts' implied volatility exposes the market's sentiment of Genuine Parts stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Genuine Parts' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Genuine Parts stock will not fluctuate a lot when Genuine Parts' options are near their expiration.

Genuine Parts Fundamentals Vs Peers

Comparing Genuine Parts' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Genuine Parts' direct or indirect competition across all of the common fundamentals between Genuine Parts and the related equities. This way, we can detect undervalued stocks with similar characteristics as Genuine Parts or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Genuine Parts' fundamental indicators could also be used in its relative valuation, which is a method of valuing Genuine Parts by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Genuine Parts to competition
FundamentalsGenuine PartsPeer Average
Return On Equity26.70 %(0.31) %
Return On Asset5.63 %(0.14) %
Profit Margin4.70 %(1.27) %
Operating Margin8.46 %(5.51) %
Current Valuation22.17 B16.62 B
Shares Outstanding142.42 M571.82 M
Shares Owned by Insiders2.12 %10.09 %
Shares Owned by Institutions80.01 %39.21 %
Number of Shares Shorted1.25 M4.71 M
Price to Earning22.92 X28.72 X
Price to Book5.75 X9.51 X
Price to Sales0.93 X11.42 X
Revenue19.7 B9.43 B
Gross Profit6.63 B27.38 B
EBITDA1.67 B3.9 B
Net Income926.92 M570.98 M
Cash and Equivalents610.78 M2.7 B
Cash per Share4.31 X5.01 X
Total Debt4.36 B5.32 B
Debt to Equity1.21 %48.70 %
Current Ratio1.16 X2.16 X
Book Value Per Share22.34 X1.93 K
Cash Flow from Operations1.36 B971.22 M
Short Ratio1.66 X4.00 X
Earnings Per Share5.61 X3.12 X
Price to Earnings To Growth3.59 X4.89 X
Number of Employees52 K18.84 K
Beta1.11-0.15
Market Capitalization18.31 B19.03 B
Total Asset8.14 B29.47 B
Retained Earnings4.53 B9.33 B
Working Capital1.61 B1.48 B
Current Asset5.56 B9.34 B
   Acquisition by JeanJacques Lafont of 1418 shares of Genuine Parts subject to Rule 16b-3 [view details]

Genuine Parts Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Genuine . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution12687.59
Daily Balance Of Power1.121429
Rate Of Daily Change1.02
Day Median Price137.81
Day Typical Price138.27
Market Facilitation Index0.0
Price Action Indicator2.94

About Genuine Parts Buy or Sell Advice

When is the right time to buy or sell Genuine Parts? Buying financial instruments such as Genuine Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Genuine Parts investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables2.64 B1.56 B1.4 B1.53 B
Inventories3.83 B3.51 B3.16 B2.96 B

Use Investing Ideas to Build Portfolios

In addition to having Genuine Parts in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Commodities Thematic Idea Now

Commodities
Commodities Theme
Funds or Etfs investing in commodities such as oil, gold, corn, soy, and agricultural goods. The Commodities theme has 40 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Commodities Theme or any other thematic opportunities.
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Please check Genuine Parts Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Genuine Parts information on this page should be used as a complementary analysis to other Genuine Parts' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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Is Genuine Parts' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Genuine Parts. If investors know Genuine will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Genuine Parts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Genuine Parts is measured differently than its book value, which is the value of Genuine that is recorded on the company's balance sheet. Investors also form their own opinion of Genuine Parts' value that differs from its market value or its book value, called intrinsic value, which is Genuine Parts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Genuine Parts' market value can be influenced by many factors that don't directly affect Genuine Parts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Genuine Parts' value and its price as these two are different measures arrived at by different means. Investors typically determine Genuine Parts value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Genuine Parts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.