Genuine Parts Company (GPC): A Bull Case Theory

We came across a bullish thesis on Genuine Parts Company (GPC) on Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on GPC. Genuine Parts Company (GPC)’s share was trading at $125.09 as of 21^st May. GPC’s trailing and forward P/E were 20.54 and 16.05 respectively according to Yahoo Finance.

Genuine Parts Company (GPC) may not capture headlines, but its steady, dividend-driven wealth creation makes it a core holding for long-term investors.

Founded in 1928, this Atlanta-based distributor of automotive and industrial parts—best known through its NAPA Auto Parts brand—has grown into a global powerhouse with a diversified and recession-resistant business model. Its consistent performance is underscored by an elite 70-year streak of uninterrupted dividend growth, earning it a spot among the Dividend Kings. Currently yielding 3.48% with a conservative 49% payout ratio, GPC offers dependable income underpinned by growing earnings and strong free cash flow.

Its two core segments—automotive and industrial—benefit from steady demand, and the company is expanding into high-growth areas like electric vehicle parts and commercial fleet services. A robust international footprint and ongoing investments in digital infrastructure and R&D further support long-term expansion. With a near-perfect financial score of 98/99 and a solid track record through market cycles, GPC is well-positioned for continued 6.2% annual revenue growth and a 7.5% CAGR through 2026.

Despite its modest P/E ratio around 18 and a “fairly valued” stock price, the quality of its earnings and operational consistency justify the premium. Institutional ownership from firms like Vanguard and BlackRock adds further credibility. While GPC may not deliver explosive gains, it offers a rare combination of durability, income, and gradual appreciation. For conservative investors seeking a “set it and forget it” anchor with long-term upside and minimal downside, GPC is a high-conviction bet in an unpredictable market.

Genuine Parts Company (GPC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held GPC at the end of the fourth quarter which was 27 in the previous quarter. While we acknowledge the risk and potential of GPC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GPC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.