Why Value Investors Like Genuine Parts (GPC)?

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).

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 potential of GPC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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