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Parker-Hannifin (PH) Deploys New Power Conversion Systems
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Parker-Hannifin Corporation (PH - Free Report) announced the deployment of its power conversion technology at two large-scale energy storage projects in Southern California.
Parker-Hannifin had been chosen to provide the power conversion inverters to two AES Energy Storage installations, the larger of which is the largest lithium ion battery-based energy storage installation across the world.
The company provided the power conversion inverters for the two AES Advancion battery-based energy storage systems. The Advancion technology facilitates improved integration of energy from traditional and renewable energy sources into the existing grid. Notably, Parker-Hannifin’s inverter technology delivers precise control of the energy supply to match demand. This, in turn, improves grid stability and reduces energy costs for consumers as well.
Parker-Hannifin has delivered power conversion equipment for energy storage projects in diverse geographies like Europe, North America, South America and the Asia-Pacific regions. In fact, its cumulative worldwide deployment stands at over 350 megawatts.
The company offers advanced energy storage products by leveraging cutting-edge controls and advanced cooling technologies, as well as systems-level expertise. Additions to its portfolio like software solutions, climate-controlled lithium-ion battery containers and the ability to provide full turn-key solutions drive the company’s growth.
Of late, Parker-Hannifin has been recording consistent bottom-line growth, largely driven by its successful cost-containment actions and the revamped Win Strategy. We expect the company to gain traction from improving demand and incremental savings from its realignment actions.
The company believes that the revamped Win strategy can help deliver a compound annual growth rate in earnings per share of 8% over the coming five years. Parker-Hannifin is also targeting segment operating margins of 17%. We believe that the improvised “Win Strategy” will aid the company’s growth momentum.
The company has emerged as a solid performer on the bourse recently, rallying 42.8% over the past one year. The gain is significantly higher than the Zacks classified Manufacturing - General Industrial industry average of 24.4%.
Parker-Hannifin has also been witnessing bullish analyst activity on the earnings estimate revision front lately, with estimates moving north. Over the past couple of months, the company witnessed four upward estimate revisions versus none downward. Consequently, over the past 60 days, the Zacks Consensus Estimate increased 7.6% and 8.3% to $7.38 and $8.31 for 2017 and 2018, respectively.
To conclude, Parker-Hannifin’s overarching Win Strategy has proven to be a tried and tested growth driver for its key financials. Moreover, the company’s diligent global restructuring initiatives are also proving conducive to profitability. These initiatives helped Parker-Hannifin offset weakness in some key regions, thus strengthening its position in end markets. Encouragingly, the company has been witnessing stabilization in most of its key end markets, indicating brighter prospects in the near future.
Other favorably placed stocks in the same industry include Barnes Group, Inc. (B - Free Report) , Altra Industrial Motion Corp. and Applied Industrial Technologies Inc. (AIT - Free Report) , each carrying a Zacks Rank #2 (Buy). Barnes Group has a solid earnings surprise history for the trailing four quarters, having beaten estimates thrice, for an average beat of 4.4%.
Altra Industrial has a positive earnings surprise history, with an average of 12.5% for the trailing four quarters, beating estimates all through.
Applied Industrial Technologies has managed to beat estimates thrice in the past four quarters, for a positive earnings surprise of 6.2%.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Parker-Hannifin (PH) Deploys New Power Conversion Systems
Parker-Hannifin Corporation (PH - Free Report) announced the deployment of its power conversion technology at two large-scale energy storage projects in Southern California.
Parker-Hannifin had been chosen to provide the power conversion inverters to two AES Energy Storage installations, the larger of which is the largest lithium ion battery-based energy storage installation across the world.
The company provided the power conversion inverters for the two AES Advancion battery-based energy storage systems. The Advancion technology facilitates improved integration of energy from traditional and renewable energy sources into the existing grid. Notably, Parker-Hannifin’s inverter technology delivers precise control of the energy supply to match demand. This, in turn, improves grid stability and reduces energy costs for consumers as well.
Parker-Hannifin has delivered power conversion equipment for energy storage projects in diverse geographies like Europe, North America, South America and the Asia-Pacific regions. In fact, its cumulative worldwide deployment stands at over 350 megawatts.
The company offers advanced energy storage products by leveraging cutting-edge controls and advanced cooling technologies, as well as systems-level expertise. Additions to its portfolio like software solutions, climate-controlled lithium-ion battery containers and the ability to provide full turn-key solutions drive the company’s growth.
Of late, Parker-Hannifin has been recording consistent bottom-line growth, largely driven by its successful cost-containment actions and the revamped Win Strategy. We expect the company to gain traction from improving demand and incremental savings from its realignment actions.
The company believes that the revamped Win strategy can help deliver a compound annual growth rate in earnings per share of 8% over the coming five years. Parker-Hannifin is also targeting segment operating margins of 17%. We believe that the improvised “Win Strategy” will aid the company’s growth momentum.
The company has emerged as a solid performer on the bourse recently, rallying 42.8% over the past one year. The gain is significantly higher than the Zacks classified Manufacturing - General Industrial industry average of 24.4%.
Parker-Hannifin has also been witnessing bullish analyst activity on the earnings estimate revision front lately, with estimates moving north. Over the past couple of months, the company witnessed four upward estimate revisions versus none downward. Consequently, over the past 60 days, the Zacks Consensus Estimate increased 7.6% and 8.3% to $7.38 and $8.31 for 2017 and 2018, respectively.
Parker-Hannifin Corporation Price and Consensus
Parker-Hannifin Corporation Price and Consensus | Parker-Hannifin Corporation Quote
To conclude, Parker-Hannifin’s overarching Win Strategy has proven to be a tried and tested growth driver for its key financials. Moreover, the company’s diligent global restructuring initiatives are also proving conducive to profitability. These initiatives helped Parker-Hannifin offset weakness in some key regions, thus strengthening its position in end markets. Encouragingly, the company has been witnessing stabilization in most of its key end markets, indicating brighter prospects in the near future.
Parker-Hannifin currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Other favorably placed stocks in the same industry include Barnes Group, Inc. (B - Free Report) , Altra Industrial Motion Corp. and Applied Industrial Technologies Inc. (AIT - Free Report) , each carrying a Zacks Rank #2 (Buy). Barnes Group has a solid earnings surprise history for the trailing four quarters, having beaten estimates thrice, for an average beat of 4.4%.
Altra Industrial has a positive earnings surprise history, with an average of 12.5% for the trailing four quarters, beating estimates all through.
Applied Industrial Technologies has managed to beat estimates thrice in the past four quarters, for a positive earnings surprise of 6.2%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>