Forget AI: Legendary Value Investor Seth Klarman Is Buying These 10 Value Stocks in 2026

7. Genuine Parts Co (NYSE:GPC)

Baupost’s Stake: $157,604,000

Genuine Parts Co (NYSE:GPC) is down about 20% this year, and value investors believe now is the time to buy. The stock trades at a forward P/E of 12.92x, below its historical average of 17.27x.

Genuine Parts Co (NYSE:GPC) is a global distributor of automotive and industrial replacement parts, operating across 17 countries under the NAPA Auto Parts and Motion Industries brands. Earnings are projected to grow 5% in 2026, accelerating to 8% in 2027 and 12% in 2028.

The defining event on the horizon is a planned company split into two independent publicly traded businesses — Global Automotive and Global Industrial — targeted for Q1 2027. Activist investor Elliott pushed for the separation, arguing each standalone business will attract its own investor base and trade at a higher multiple. Bulls see it as a re-rating catalyst that unlocks hidden value. Bears point to real near-term risks — separation costs are already emerging, future dividend policy is unclear, and dis-synergies could add $100-200 million in incremental costs.

Genuine Parts Co (NYSE:GPC) has a dividend yield of over 4.3% with about 70 consecutive years of dividend increases.