Why Value Investors Like Genuine Parts (GPC)?

We just covered Forget AI: Legendary Value Investor Seth Klarman Is Buying These 10 Value Stocks in 2026. Genuine Parts Co (NYSE:GPC) ranks #7 (see Seth Klarman Is Buying These 5 Value Stocks in 2026).

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.

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 time frame. If you are looking for an AI stock that is more promising than GPC and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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