Text size: Small font Default font Larger font

Have an account? Please log in.

.
TSI Network
Patrick McKeough is one of Canada’s top safe-money advisors. The Wall Street Journal, Forbes and The Hulbert Financial Digest have all recognized his ability to find stocks with hidden value. He is editor and publisher of The Successful Investor, Stock Pickers Digest, Wall Street Stock Forecaster and Canadian Wealth Advisor; inventor of the Quick Profit/Value System and the ValuVesting System™. A best-selling Canadian author, he wrote Riding the Bull, the book that predicted the 1990s stock-market boom.

Genuine Parts Co. $35 – New York symbol GPC

  • Comments
  •  
  •  
.

GENUINE PARTS CO. $35 (New York symbol GPC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 161.8 million; Market cap: $5.7 billion; WSSF Rating: Average) distributes automotive replacement parts to over 4,800 independent outlets in North America. It also operates over 1,100 auto parts stores under the NAPA banner. As well, the company distributes industrial parts, office furniture and electrical equipment.

Genuine Parts has increased its dividend for 52 consecutive years. The current rate of $1.56 a share yields 4.5%.

The stock has moved down from $50 in November, 2007. That’s partly due to its exposure to the slowing automotive industry, which accounts for half of its revenue and earnings. However, a drop in new car sales is good news for Genuine Parts. As more drivers choose to maintain their current vehicles instead of buying new ones, demand for replacement parts is likely to rise.

In the third quarter of 2008, Genuine Parts earned $131.0 million, up 1.9% from $128.6 million a year earlier. Earnings per share rose 6.6%, to $0.81 from $0.76, on fewer shares outstanding. Revenue grew 3.0%, to $2.9 billion from $2.8 billion.

Genuine Parts’ strong balance sheet will also help it overcome this downturn. Long-term debt of $250 million is just 4% of its market cap. It also holds cash of $124.4 million or $0.77 a share.

The company should earn $3.10 a share in 2008, and the stock trades at just 11.3 times that figure.

Genuine Parts is a buy.

.

Permalink: http://www.tsinetwork.ca/?p=2993


All of our articles are available for republishing as long as you provide a link back to the original article.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

  • Comments
  •  
  •  
.

Would you like us to inform you when new articles are posted?

What do you think? Go ahead and add your comment.

Please be respectful with your comments and help us keep this an area that everyone can enjoy. If you believe a comment is abusive or otherwise violates our Terms of Use, please click here to report it to the administrator.

Comments are closed.

.

Free Subscription to
The Successful Investor Network Daily

  • Daily investment advice you can act on
  • Free access to our special stock market reports
  • Plus much, much more! Try it today
Twitter Facebook
Follow TSI Network on Twitter and Facebook!

TSI Network Products

In today's economy, it's more important than ever to have clear investment advice that is tailored to your own personal goals. This is where Pat McKeough's conservative safe-investing philosophy comes in. Through TSI Network, you get access to reports, monthly newsletters and premium services that go beyond the daily headlines to give you all the advice and information you need to build a portfolio with long-term growth potential. Simply click on the links below to discover which service is right for you.

.
.