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If You Invested $1000 in Parker-Hannifin 10 Years Ago, This Is How Much You'd Have Now

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Parker-Hannifin (PH - Free Report) ten years ago? It may not have been easy to hold on to PH for all that time, but if you did, how much would your investment be worth today?

Parker-Hannifin's Business In-Depth

With that in mind, let's take a look at Parker-Hannifin's main business drivers.

Parker-Hannifin Corporation is a global diversified manufacturer of motion & control technologies and systems. The company provides precision engineered solutions for a wide variety of mobile, industrial and aerospace markets.

Diversified Industrial Segment (82.8% of second-quarter fiscal 2021 sales): This segment is engaged in the production of a wide range of motion-control and fluid systems & components. The products offered by this segment are used in transportation, mobile construction, refrigeration and air conditioning, agriculture and other markets.

The segment sells its products through two main channels, namely, original equipment manufacturers (OEMs) and extensive distribution network to smaller OEMs and the aftermarket.

Products offered include sealing devices (dynamic and static); filters, systems and instruments to monitor and remove contaminants from fuel, air, oil, water and other liquids and gases; fluid connectors that control, transmit and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; and high-quality flow control solutions.

Aerospace Systems (17.2%): This segment supervises the designing and manufacturing of products and also provides aftermarket support for a broad range of aerospace products including commercial, business jet, military and general aviation aircraft and missile.

Products offered include control actuation systems & components, fluid metering, delivery & atomization devices, fuel systems & components, pneumatic control components, hydraulic systems & components and lubrication components among others.

The segment's products and services are offered to OEM and maintenance, repair and overhaul (MRO) customers throughout the world. Notably, the products are marketed by field sales employees and are sold to manufacturers as well as end customers.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Parker-Hannifin ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in March 2011 would be worth $3,437, or a 243.70% gain, as of March 23, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 204.58% and the price of gold increased 16.15% over the same time frame in comparison.

Going forward, analysts are expecting more upside for PH.

Parker-Hannifin is poised to benefit from improving product demand, its unique Win Strategy and cost-control measures. Also, synergistic gains from acquired assets are expected to strengthen its performance. For fiscal 2021, it anticipates year-over-year sales growth of 0.7-2.7% versus a 2-5% decline mentioned earlier. Also, adjusted earnings are expected to be $13.65-$14.15 per share, up from the previously stated $11.70-$12.30. In the past 60 days, its earnings estimates have been raised for fiscal 2021 and 2022. However, the company anticipates sales from the Aerospace Systems business for fiscal 2021 to decline 12.3-14.3% year over year. Also, realignment expenses are predicted to hurt earnings in the year. In the past three months, Parker-Hannifin’s shares have underperformed the industry.

The stock is up 10.16% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 10 higher, for fiscal 2021. The consensus estimate has moved up as well.


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