We recently published a list of Top 10 Auto Parts Stocks That Could Surge On Trump’s Auto Tariff Relaxation. In this article, we are going to take a look at where Genuine Parts Company (NYSE:GPC) stands against other top auto parts stocks that could surge On Trump’s auto tariff relaxation.
The corporate earnings season is about to kick off, but investors have something else on their minds: Donald Trump’s tariffs. Since the beginning of his term, Trump has wreaked havoc on the markets with repeated tariffs, resulting in the S&P index being down nearly 8% for the year.
We have observed that some of the most aggressive tariff policies are soon revoked or relaxed, resulting in a rally that brings back the stock prices to reasonable levels. We saw this recently when Donald Trump hinted that Big Tech companies may not bear the brunt of the tariffs as badly as previously thought. As a result, investors poured their money into these companies, thinking they may be critical for the US infrastructure.
A similar development is forming in the auto sector, with Trump likely to offer some relaxation when it comes to importing auto parts or manufacturing vehicles outside the US. Since auto parts companies are critical to the supply chain of this industry, we decided to take a look at the auto parts stocks that could surge following any news of relaxation in tariffs.
To come up with our list of Top 10 Auto Parts Stocks that could surge following Trump’s auto tariff reprieve, we looked at companies in the auto parts industry with a minimum market cap of $300 million that were outperforming their peers.
A line of mechanics diagnosing a recreation vehicle engine at a repair shop.
Genuine Parts Company operates as an industrial and automotive replacement parts distributor. The company operates through Industrial Parts Group and Automotive Parts Group segments. It supplies accessories, automotive parts, replacement parts and solutions for SUVs, motorcycles, hybrid & electric vehicles, buses, and other vehicles.
The company recently reported its Q4 2024 results, demonstrating a 3.3% YoY increase in top-line sales. Gross profit increased by 1.8% YoY, reaching $2.1 billion. The firm had a slightly higher debt due to insufficient operating cash flow to fund investing activities. A part of operating cash flow was used for share buybacks and dividend payments, a move questioned by many in the context of increasing debt.
CFO Bert Nappier highlighted the company’s focus on cost control by mentioning:
“Our global restructuring efforts announced last year have progressed ahead of plan, delivering cost savings at the high end of expectations.”