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Jim Cramer On Genuine Parts: The Amazon-Resistant Company 'Doesn't Get Enough Credit'

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Jim Cramer On Genuine Parts: The Amazon-Resistant Company 'Doesn't Get Enough Credit'

Shares of Genuine Parts Company (NYSE: GPC) were trading higher by more than 3 percent after the company reported a top-and-bottom-line beat in its first quarter report and raised its full year guidance.

The move caught the attention of CNBC's Jim Cramer who suggested that the distributor of automotive, industrial, office and electrical parts and products isn't discussed enough among investors.

Cramer explained that Genuine Parts' earnings report and guidance raise has two main implications for the broader segment.

First, Cramer highlighted the fact that companies like Genuine Parts and its NAPA Auto Parts brand was considered to be dead-on-arrival as Amazon.com, Inc. (NASDAQ: AMZN) expands into the auto parts space and makes it retail operations obsolete.

However, the strength in Genuine Parts and some of its peers including O'Reilly Automotive Inc (NASDAQ: ORLY) and AutoZone, Inc. (NYSE: AZO) casts a doubt on how effective Amazon can be in selling auto parts online - at least for the time being.

Cramer also suggested Genuine Parts' strength reaffirms the strength in autos which may call into question Morgan Stanley's downgrade of Sirius XM Holdings Inc. (NASDAQ: SIRI), which was based on the thesis of lower than expected new and used auto sales.

"You take a look at all the read-through and people are saying maybe that whole initiative that Amazon was going to come in and bust up this business is wrong," Cramer emphasized. "Maybe the fact that autos are at peak... maybe that is the wrong call. Genuine Parts is a remarkable company that doesn't get enough credit and they are going to get credit today."

See Also:

Amazon Buying An After-Market Auto Parts Company Is 'Unlikely'

Auto Parts Retail: Amazon Vs. Brick & Mortars

Posted-In: Auto Parts auto sales CNBC genuine parts Jim CramerMedia Best of Benzinga

 

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