Market Overview - U.S. equities started February on a subdued note, with investors becoming more selective regarding AI exposure, leading to a decline in stocks as the market adjusted high expectations and penalized companies perceived as potential AI "losers" [1] - Retail investors are advised to adopt a disciplined approach by reassessing allocations, tightening risk controls, and ensuring alignment with long-term goals [1] Stock Selection Criteria - Traditional stock selection based on sales growth is emphasized as a more reliable metric compared to earnings-focused metrics [2] - Sales growth is viewed as a clear indicator of a company's underlying momentum, reflecting actual demand for products and services, and can signal future profit potential [3] - Revenue trends should be analyzed in context, comparing growth with peers and industry norms to distinguish between sustainable strength and temporary boosts [4] Screening Parameters for Winning Stocks - Stocks are shortlisted based on a 5-Year Historical Sales Growth (%) greater than the industry average and a cash flow exceeding $500 million [5] - Additional criteria include a Price/Sales (P/S) Ratio lower than the industry average, indicating better value for each dollar of revenue [6] - Estimate revisions for future sales that exceed industry standards are also considered, as they can lead to stock price increases [6] - Operating Margin over the last five years should be greater than 5%, indicating effective cost control and sales growth outpacing costs [7] - Return on Equity (ROE) should be above 5%, ensuring that sales growth translates into profits and that the company is not hoarding cash [8] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are preferred, as they are known to outperform in various market conditions [8] Recommended Stocks - Genuine Parts Company (GPC) is highlighted, with an expected sales growth rate of 3.7% for 2026 and a Zacks Rank of 2 [9][10] - Wheaton Precious Metals Corp. (WPM) is noted for its expected sales growth rate of 35.4% for 2026, also holding a Zacks Rank of 2 [9][11] - FirstEnergy Corporation (FE) is projected to have a sales increase of 3.6% in 2026, currently carrying a Zacks Rank of 2 [9][12]

Genuine Parts Company (NYSE:GPC) is included among the 13 Cheapest Dividend Aristocrats to Invest in. Truist and Evercore Lift Targets on Genuine Parts (GPC) as Momentum Builds On February 12, Truist raised its price recommendation on Genuine Parts Company (NYSE:GPC) to $162 from $146 and kept a Buy rating in place. The firm sees a supportive setup heading into Q4. In its view, the automotive segment should get a lift from same-SKU inflation, while the industrial business appears to be gaining traction a ...

Core Insights - The article emphasizes the importance of building a resilient portfolio that focuses on companies with consistent growth and shareholder rewards, regardless of market conditions [2][3] Group 1: Investment Strategy - A bulletproof portfolio should not chase trends but should include businesses that grow sales and reward shareholders consistently [2] - Companies that perform well during market volatility are highlighted as prime investment opportunities [1][2] Group 2: Dividend Kings - The article introduces the concept of "Dividend Kings," which are companies that have increased dividends for 50 or more consecutive years [3] - A screening process was used to identify companies with consistent revenue growth, balanced payout ratios, and strong analyst backing [4][5] Group 3: Genuine Parts Company (GPC) - Genuine Parts Company is a leader in the automobile industry, specializing in automotive and industrial replacement parts, with notable brands like NAPA Auto Parts [7] - In the latest quarterly financials, GPC reported a 5% year-over-year sales increase to $6.3 billion and a 21.11% increase over the past five years, although net income slightly decreased by 0.2% to $226 million [7] - The company has raised its dividends for 69 consecutive years, currently paying a forward annual dividend of $4.12, yielding around 3%, with a balanced dividend payout ratio of 55% [8]

Group 1 - Genuine Parts Company plans to release its fourth quarter and full-year financial results on February 17, 2026 [1] - Following the financial results release, management will host a conference call at 8:30 a.m. ET, accessible via webcast and phone [1] - A replay of the conference call will be available two hours after its completion on the company's website [1] Group 2 - Genuine Parts Company, established in 1928, is a leading global service provider of automotive and industrial replacement parts [2] - The company operates its Automotive Parts Group across multiple countries including the U.S., Canada, Mexico, and several European nations [2] - The Industrial Parts Group serves customers in the U.S., Canada, Mexico, and Australasia, supported by a vast network of over 10,700 locations and more than 63,000 employees [2]

Core Viewpoint - Genuine Parts Company (GPC) has a long history of paying dividends, but its financial performance in 2025 has raised concerns about its sustainability, particularly as it now pays out nearly all of its net income in dividends [2][3]. Financial Performance - GPC's earnings payout ratio is at 70.4%, with earnings of $5.81 per share and dividends of $4.09, indicating a concerning trend as net income fell by 31.3% year-over-year to $904 million while dividends continued to rise [3][8]. - The free cash flow (FCF) payout ratio is approximately 60%, which is considered adequate, but the remaining free cash flow after capital expenditures is only $129 million, a significant decrease from $396 million the previous year [4]. Balance Sheet Condition - Total debt has increased by 31% over two years to $6.4 billion, while cash reserves have decreased by 61% to $431 million, leading to a higher debt-to-equity ratio of 1.34x [5][6]. - Interest coverage remains strong at 8.2x, and net debt-to-EBITDA is manageable at 3.1x, but short-term debt has tripled in two years, indicating potential liquidity issues [6]. Dividend History and Growth - GPC has consistently raised its dividend since 1957, making it a Dividend King, but the latest increase of 3% to $1.03 is the slowest growth rate in recent history [7].

Core Viewpoint - Genuine Parts Company (GPC) is expected to announce its fiscal fourth-quarter earnings for 2025, with analysts projecting a profit increase compared to the previous year [1][2]. Financial Performance - Analysts anticipate GPC to report a diluted EPS of $1.80 for the upcoming quarter, reflecting an 11.8% increase from $1.61 in the same quarter last year [2]. - For the full fiscal year, GPC is expected to report an EPS of $7.62, which is a decline of 6.6% from $8.16 in fiscal 2024, but is projected to rise to $8.42 in fiscal 2026, marking a 10.5% year-over-year increase [3]. Stock Performance - Over the past 52 weeks, GPC stock has increased by 16%, underperforming the S&P 500 Index's 16.7% gains but outperforming the Consumer Discretionary Select Sector SPDR Fund's 8% gains [4]. - Following the Q3 results announcement, GPC shares closed up more than 2%, despite an adjusted EPS of $1.98 falling short of Wall Street's expectations of $2.02 [5]. Analyst Sentiment - The consensus opinion on GPC stock is moderately bullish, with a "Moderate Buy" rating. Out of 12 analysts, five recommend a "Strong Buy" and seven suggest a "Hold" [6]. - The average analyst price target for GPC is $147.88, indicating a potential upside of 8.6% from current levels [6].

Core Viewpoint - Genuine Parts Company announces the retirement of Non-Executive Chairman Paul D. Donahue and the appointment of Will Stengel, the current President and CEO, as Chair-Elect, consolidating leadership roles to enhance operational performance and shareholder value [1][2][3]. Leadership Transition - Paul D. Donahue will retire from the Board of Directors at the 2026 annual meeting, having served the company for over two decades, during which he streamlined the portfolio and strengthened governance [1][2]. - Will Stengel, who has been with the company in various leadership roles since 2019, will assume the combined position of Chairman and CEO, promoting unified leadership and leveraging his operational and strategic expertise [1][2][4]. Company Background - Genuine Parts Company, established in 1928, is a leading global service provider of automotive and industrial replacement parts, operating in 17 countries with over 10,700 locations and more than 63,000 employees [4].

Group 1 - Genuine Parts Company (GPC) announced a $1.3 billion acquisition of Kaman Distribution Group, expanding its product offerings to include electromechanical parts, bearings, and motion control products [1] - The acquisition is part of GPC's strategy to enhance its distribution capabilities and diversify its product range [1] - The investment group "Value In Corporate Events" focuses on identifying actionable investment opportunities through major corporate events such as mergers and acquisitions, IPOs, and earnings reports [1]

Company Overview - Genuine Parts Company (GPC) is a leading global distributor of automotive and industrial replacement parts, known for its NAPA Auto Parts brand in North America [1] - The company has a market cap of $17.6 billion, operates over 10,700 locations in 17 countries, and employs over 60,000 people [1] Market Position - GPC is classified as a large-cap stock due to its market cap exceeding $10 billion, indicating its substantial size and influence in the auto parts industry [2] - The company benefits from consistent demand driven by an aging vehicle fleet and recurring maintenance needs, which supports stable cash flows [2] - Its diversified operations across automotive, industrial, and international markets position it as a steady, defensive player in the distribution sector [2] Stock Performance - GPC is currently trading 8.5% below its 52-week high of $143.48 and has declined 5.9% over the past three months, underperforming the Consumer Discretionary Select Sector SPDR Fund's (XLY) 2.8% returns during the same period [3] - However, GPC stock has surged 12.4% year-to-date and gained 4.7% over the past 52 weeks, outperforming the XLY's 6.7% gains in 2025 and 3% return over the past year [4] Recent Earnings - On October 21, GPC shares rose 2.1% following the release of its third-quarter earnings, with sales reaching $6.3 billion, a 4.9% year-over-year increase [5] - The sales growth was driven by comparable sales growth, acquisitions, and favorable foreign-exchange effects, with revenue beating consensus estimates [5] - Adjusted diluted EPS increased to approximately $1.98, reflecting a 5.3% rise from the previous year [5] - The company raised its full-year 2025 revenue growth outlook to 3–4% from the prior range, indicating confidence in ongoing execution despite a challenging macro backdrop [5]

Core Insights - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with Merck, Altria, and Genuine Parts recently announcing dividend hikes and offering yields up to 7% [1] Merck - Merck & Co. has raised its dividends for 14 consecutive years, with the latest increase on Nov. 19 raising the quarterly payout from $0.77 to $0.81 per share, resulting in an annual figure of $3.24 per share [3] - The current dividend yield for Merck is 3.49% [3] - As of Sept. 30, Merck's annual revenue was $64.23 billion, and Q3 2025 revenues were reported at $17.28 billion with an EPS of $2.58, both exceeding consensus estimates [4] Altria - Altria Group has a remarkable track record of increasing dividends for 56 years, with the most recent hike on Aug. 21 raising the quarterly payout from $1.02 to $1.06 per share, equating to an annual figure of $4.24 per share [5] - The current dividend yield for Altria is 7.29% [5] - Altria's annual revenue as of Sept. 30 was $20.17 billion, with Q3 2025 revenues of $6.07 billion and an EPS of $1.45, both surpassing consensus estimates [6] Genuine Parts - Genuine Parts Co. has consistently raised its dividends for 69 years, with the latest increase on Feb. 18 raising the quarterly payout by 3% to $1.03 per share, resulting in an annual figure of $4.12 per share [8] - The current dividend yield for Genuine Parts is 3.24% [8]