Genuine Parts Co. $49 - New York symbol GPC

GENUINE PARTS CO. $49 (New York symbol GPC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 167.9 million; Market cap: $8.2 billion; WSSF Rating: Average) distributes automotive replacement parts to over 4,800 independent outlets in North America. The company also operates 1,100 stores under the NAPA banner. It also distributes industrial parts, office supplies and electrical equipment. The auto parts business supplies about half of the Genuine Parts’ revenue. However, most of the company’s recent growth has come from its industrial parts division, which accounts for 30% of total sales. In the three months ended September 30, 2007, sales of industrial parts rose 7%, while auto parts sales grew just 3%. Overall sales rose 3.7%, to $2.8 billion from $2.7 billion a year earlier. Earnings rose 7.0%, to $0.76 a share from $0.71 a share. The company should earn $2.99 a share in 2007, and the stock trades at 16.4 times that figure. It also trades at just 0.8 times its sales of $63 a share. The $1.46 dividend yields 3.0%. Genuine Parts is a buy.

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