The Best Stock to Invest $2,500 in Right Now

Since 2020, around 1 million prospective new car buyers have left the market and aren't expected to return any time soon, according to The Wall Street Journal.

Before 2020, Americans were buying roughly 17 million cars and trucks per year, but that number is expected to be 16 million or fewer this year; analysts don't foresee those totals reaching 17 million again until the end of the decade or later. Stubborn inflation, high interest rates, and fuel costs have joined forces to keep more buyers on the sidelines, a concern for automakers.

That said, that dynamic can also be a boon for certain companies as more people hold on to their vehicles longer and pay for repairs rather than opting for a new vehicle. One company in particular that can benefit from that dynamic is Genuine Parts (NYSE: GPC).

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The beneficiary of sluggish new car sales

Genuine Parts is a global provider of automotive accessories, replacement parts, and solutions. The name may not sound familiar to some, but what's more familiar is its NAPA Auto Parts brand, which includes just under 6,000 company-owned and independently owned NAPA stores in the United States.

Those stores offer everything from batteries to brakes to motor oil. Through its auto care centers, NAPA also provides brake services, oil changes, transmission repairs, and more. Essentially, it genuinely helps keep cars and trucks on the roads longer as new car purchases are being delayed.

Earnings results and a spinoff

On Oct. 20, Genuine reported its 2026 third-quarter earnings results, which the market did not care for. Revenue was $6.5 billion, a 4.2% increase from the prior-year period, while net income was $224 million, a decline of 0.9%. The stock price dropped 6.6% on the day, but there's a reason this may have created an opportunity for more aggressive investors.

In addition to its automotive division, Genuine has an industrial division that provides replacement parts and original equipment components under the Motion brand. To focus each segment of the company on what it does best, however, Genuine will separate its automotive and industrial divisions; the spinoff is expected to be finalized in the first quarter of 2027.

Focusing solely on the automotive sector can enable the automotive group to maintain a stronger focus, make faster decisions, and redeploy earnings directly back into its business.

The long-term plan

A $2,500 investment today could turn into meaningfully more, but there's no near-term forecast to offer, as current one-year price targets are still based on the company as a whole. This would be an investment for those considering holding the shares for years, as it will take time for the automotive division to show what it can do on its own, and markets will need some time to digest how to value the company after its split.

That said, as Genuine can benefit from fewer new cars being sold and from a renewed strategic focus through the upcoming spinoff, the catalysts are in place to make an investment today more valuable in the years ahead. As a bonus, the spinoff could also benefit the industrial division, and shareholders will receive a stake in it when the auto and industrial segments separate.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool recommends Genuine Parts. The Motley Fool has a disclosure policy.