Genuine Parts (GPC) has been trading steadily this week after reporting fourth-quarter earnings per share (EPS) of $1.52 vs. $1.35, which was $0.17 better than expected.

Sales were down 0.7%, which was pretty much in line with expectations, with the company beating on the bottom line due to a better mix of revenues and ongoing cost cuts.

On the earnings conference call, management indicated that 2021 is off to a good start. It is projecting a sales gain of 3% to 5% and EPS between $5.55 and $5.75, versus the $5.27 per share the company earned in 2020.

There was some disappointment in the guidance, and EPS estimates for this year were set at $5.75. However, the company has been very conservative with its expectations, and I think this is the case this year.

Provided that the economy remains sound, and the COVID-19 shutdowns end, the company should earn at least $5.75 a share this year. This is very supportive of my $110 target. GPC is a buy under $95.