Genuine Parts (GPC -2.2%) slips this morning, despite a solid Q2 earnings beat. Investors are reacting to the company's cut to its FY revenue growth forecast. It now sees FY EPS of $4.50 - $4.60, with bias to mid-lower end. Street consensus is still in range however, albeit towards the bottom-end at $4.51. The company cites an uneven econonmy and weakness in its nonautomotive business units for the lower guidance.
If history is a guide, the markets may be due for a pullback, according to S&P Capital's Sam Stovall. Since World War II, Stovall says the median advance once the S&P hits its previous high after recovering from a bear market has been just 3%. But despite the ominous warning, there still may be some places to ride it all out. JPMorgan's chief U.S. equities strategist Tom Lee recently came up with 15 stocks that outperformed the S&P 500 in eight of the last 11 pullbacks since 2009: CAG, IBM, DIS, GPC, MMM, FISV, PAYX, PPG, SYY, SIAL, UNP, UTX, PX, L, and XRAY.
Genuine Parts (GPC +1.7%) says it entered into a definitive agreement to complete the acquisition of Exego Group for a total purchase price of $800 including the assumption of new debt. The company expects to use cash and borrowings to finance the deal.