IBD 50 member Genuine Parts is forming a base offering a 142.09 entry with its next quarterly EPS report set for the morning of July 27. The pattern is a first-stage flat base. Additionally, it's been putting up some strong numbers and it's key ratings are top-notch. Genuine Parts stock rose fractionally Wednesday to 137.30.
Genuine Parts stock has a best-possible 99 Composite Rating and earns the No. 1 rank among its peers in the Retail/Wholesale-Auto industry group. O'Reilly Automotive and AutoZone are also among the group's highest-rated stocks. The group as a whole boasts a No. 28 rank on IBD's list of 197 industry groups.
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Genuine Parts Stock's Other Ratings Shine
Among its other ratings, auto replacement parts and industrial and office supplies retailer Genuine Parts has an 86 EPS Rating. That puts it in the top 14% of all companies for profit growth in recent quarters and years.
In terms of fundamentals, the company has posted two quarters of rising earnings growth. Revenue growth has also moved higher during the same period. Last quarter, the Atlanta-based auto parts retailer reported a 24% rise in earnings to $1.86 per share. Revenue grew 19% to $5.29 billion.
Consensus analyst estimates call for EPS growth of 16% for the quarter, and 13% growth for the full year. Annual growth estimates were recently revised lower.
Be aware that it's risky to buy any stock just before it reports. You can minimize your risk on Genuine Parts stock by waiting to see the actual numbers and the market's reaction. Using an options strategy during earnings season is another way to put yourself in a position to profit, while minimizing the potential downside.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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