Is Genuine Parts Company (GPC) The Top Auto Parts Stock That Could Surge On Trump's Auto Tariff Relaxation?

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.

Genuine Parts Company (NYSE:GPC)

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.”

For 2025, the company expects 2% to 4% total sales growth aided by recovery in European and industrial markets in the latter half of the year. With the help of restructuring efforts, the firm anticipates producing additional savings valued between $100 million and $125 million in 2025.

Overall, GPC ranks 6th on our list of top auto parts stocks that could surge On Trump’s auto tariff relaxation. While we acknowledge the potential of GPC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GPC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.