Genuine Parts Stock: Is GPC Outperforming the Consumer Discretionary Sector?

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]