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Parker Hannifin Corporation (PH - Free Report) is seeing renewed business growth as it celebrates its 100th anniversary. This Zacks Rank #1 (Strong Buy) is expected to see double digit earnings growth the next 2 years.
Parker is a leader in motion and control technologies including fluid power, filtration systems, motors, monitors and sensors for the industrial and aerospace markets.
Completes Acquisition of CLARCOR
On Feb 28, Parker closed on its $4.3 billion acquisition of CLARCOR, a maker of filtration products. This was an all cash deal.
It's expected to be accretive to Parker's fiscal 2017 earnings.
The analysts were bullish on the acquisition as it will enhance Parker's existing business portfolio, especially in the US with aftermarket sales.
Orders on the Rise
On Feb 2, Parker reported its fiscal second quarter results and blew by the Zacks Consensus Estimate by $0.51. Earnings were $1.91 versus the consensus of $1.40.
Business was on the upswing.
"Total Parker order rates for the quarter continued to move in a positive direction, consistent with our previously guided expectations for sales growth in the second half of the fiscal year," said CEO Tom Williams.
In the second quarter, orders rose 5% year-over-year for all of Parker's businesses, with the increases coming in the Industrial International businesses and the Aerospace Systems Segment.
Estimates Moving Higher
Now that the CLARCOR deal has closed, and business confidence is increasing globally, the analysts are also getting more bullish on Parker's outlook.
1 estimate has moved higher in just the last week, pushing the Zacks Consensus up to $7.42 from $6.86 just 60 days ago.
That's earnings growth of 15%.
The positive momentum is expected to last into fiscal 2018 as well as analysts see another 11.3% earnings growth.
Shares at 5-Year Highs
Parker shares started to hit their stride in early 2016 and have been on a tear ever since.
They're trading at 5-year highs.
You're not going to get a value stock anymore as it has a forward P/E of 21.4.
But Parker is one of the dividend superstars. It has increased its dividend every year for 60 consecutive fiscal years, including during the Great Recession.
Its one of only a few companies to have that track record.
The dividend is currently yielding 1.7%.
For investors looking for an industrial name that's a play on the return of global economic growth, Parker is one to keep on your short list.
Want to see all of today's Strong Buys?
Today's Bull of the Day is just one of 220 Zacks Rank #1 stocks. Right now the full, up-to-the-minute list is available to you free of charge. There is no better place to start your own stock search. Plus you can access the full list of Zacks Strong Sells and a lot more of our private research. See the stocks free >>.
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Bull of the Day: Parker Hannifin (PH)
Parker Hannifin Corporation (PH - Free Report) is seeing renewed business growth as it celebrates its 100th anniversary. This Zacks Rank #1 (Strong Buy) is expected to see double digit earnings growth the next 2 years.
Parker is a leader in motion and control technologies including fluid power, filtration systems, motors, monitors and sensors for the industrial and aerospace markets.
Completes Acquisition of CLARCOR
On Feb 28, Parker closed on its $4.3 billion acquisition of CLARCOR, a maker of filtration products. This was an all cash deal.
It's expected to be accretive to Parker's fiscal 2017 earnings.
The analysts were bullish on the acquisition as it will enhance Parker's existing business portfolio, especially in the US with aftermarket sales.
Orders on the Rise
On Feb 2, Parker reported its fiscal second quarter results and blew by the Zacks Consensus Estimate by $0.51. Earnings were $1.91 versus the consensus of $1.40.
Business was on the upswing.
"Total Parker order rates for the quarter continued to move in a positive direction, consistent with our previously guided expectations for sales growth in the second half of the fiscal year," said CEO Tom Williams.
In the second quarter, orders rose 5% year-over-year for all of Parker's businesses, with the increases coming in the Industrial International businesses and the Aerospace Systems Segment.
Estimates Moving Higher
Now that the CLARCOR deal has closed, and business confidence is increasing globally, the analysts are also getting more bullish on Parker's outlook.
1 estimate has moved higher in just the last week, pushing the Zacks Consensus up to $7.42 from $6.86 just 60 days ago.
That's earnings growth of 15%.
The positive momentum is expected to last into fiscal 2018 as well as analysts see another 11.3% earnings growth.
Shares at 5-Year Highs
Parker shares started to hit their stride in early 2016 and have been on a tear ever since.
They're trading at 5-year highs.
You're not going to get a value stock anymore as it has a forward P/E of 21.4.
But Parker is one of the dividend superstars. It has increased its dividend every year for 60 consecutive fiscal years, including during the Great Recession.
Its one of only a few companies to have that track record.
The dividend is currently yielding 1.7%.
For investors looking for an industrial name that's a play on the return of global economic growth, Parker is one to keep on your short list.
Want to see all of today's Strong Buys?
Today's Bull of the Day is just one of 220 Zacks Rank #1 stocks. Right now the full, up-to-the-minute list is available to you free of charge. There is no better place to start your own stock search. Plus you can access the full list of Zacks Strong Sells and a lot more of our private research. See the stocks free >>.