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If You Invested $1000 in Parker-Hannifin a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 (73.4% of third-quarter fiscal 2023 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 (23.6%): 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 June 2013 would be worth $3,945.11, or a 294.51% gain, as of June 28, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 171.41% and the price of gold increased 49.18% over the same time frame in comparison.

Going forward, analysts are expecting more upside for PH.

Parker-Hannifin is poised for growth on the back of synergies from the Meggitt buyout (September 2022) and benefits from the Win strategy. The Meggitt buyout has bolstered the company’s Aerospace Systems unit (revenues jumped 88.9% year over year in the fiscal third quarter). Benefits from the Win strategy are driving the company’s margins. The company’s measures to add shareholder value hold promise. In April, the company hiked its dividend by 11%. Backed by these tailwinds, shares of Parker-Hannifin have outperformed its industry in the year-to-date period. However, escalating cost of sales (up 20.5% year over year in the first nine months of fiscal 2023) poses a threat to the company’s bottom line. Foreign currency headwinds are weighing on its top line. Weak liquidity position is an added concern for Parker-Hannifin.

Shares have gained 15.12% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

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