Are the real parts stocks below the performance of the Nasdaq?

Based in Atlanta, Georgia, the Real Parts Company (GPC) is a global distributor of automobile replacement parts and industrial goods. Its market capitalization is $16.5 billion, and offers a wide range of products including brakes, batteries, fluid power supplies, abrasives, and value-added services such as paint mixing, hose assembly and inventory management.

Companies worth more than $10 billion are usually classified as “large caps”, with GPCs fully compliant with labels, market caps exceeding this threshold, highlighting their size, influence and advantage in the automotive parts industry. The company benefits from a diversified business model across its distribution of automobiles and industrial components, providing revenue stability and resilience throughout the economic cycle. Its flagship NAPA Auto Parts Brand and Motion Industries platform offers strong market leadership in North America, but its extensive global footprint allows for the benefits of scale and efficient supply chain management.

The auto parts company slipped 20.3% from its 52-week high on August 1, 2024 from $149.22. GPC stocks have fallen 4.1% over the past three months, lagging behind the increase in NASDAQ composites ($NASX) within the simultaneous frame.

Furthermore, in the long term, GPC has declined by 14.7% over the last 52 weeks, with a tolerable 9.4% over the same time frame. Nevertheless, on a YTD basis, GPC stocks are up 1.8%, surpassing their generous 1.2% return.

To see the bearish trend, GPC has been below the 200-day moving average over the past year, undergoing mild fluctuations, and has recently begun trading below the 50-day moving average.

On April 22nd, GPC stocks surged 2.8% after the first quarter earnings release. The company reported revenue of $5.9 billion, up 1.4% year-on-year, driven by donations from the acquisition, although partially offset by a comparable decline in sales. Topline figures slightly exceeded consensus estimates. Additionally, the $1.75 adjusted EPS fell 21.2% from the same period last year, but 5.4% above analyst estimates. Despite the tariff and trade dynamics, GPC provided better performance than expected. This could have impressed investors. Looking forward to fiscal 2025, the company reaffirmed its guidance, forecasting revenue growth of 2% to 4%, adjusting revenues of $7.75 to $8.25 per share.