Shareholders Should Be Pleased With Genuine Parts Company’s (NYSE:GPC) Price
With a price-to-earnings (or “P/E”) ratio of 20.6x Genuine Parts Company (NYSE:GPC) may be sending bearish signals at the moment, given that almost half of all companies in the United States have P/E ratios under 17x and even P/E’s lower than 10x are not unusual. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
Genuine Parts hasn’t been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average. One possibility is that the P/E is high because investors think this poor earnings…
