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Reasons to Add Parker-Hannifin (PH) to Your Portfolio Now
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Parker-Hannifin Corporation (PH - Free Report) is poised to benefit, courtesy of strength across its end markets, strategic acquisitions and focus on operational execution. The company remains committed to investing in growth opportunities and strengthening its long-term market position.
Image Source: Zacks Investment Research
It has a market capitalization of $58.9 billion. Over the past three months, it has gained 19.2% compared with the industry’s growth of 15.8%. PH currently carries a Zacks Rank #2 (Buy).
Let’s delve into the factors that have been aiding the firm for a while now.
End-Market Strength: Parker-Hannifin’s Diversified Industrial segment has been witnessing solid demand for its products and solutions across the oil and gas, material handling, cars and light trucks and farm and agriculture markets in the North American region. Higher sales in Europe and Latin America have been boosting the segment’s sales of late. The Diversified Industrial segment’s revenues increased 3.8% year over year in the first quarter of fiscal 2024.
The company has also been witnessing solid momentum in the Aerospace Systems segment, buoyed by higher volume across commercial and military aftermarket businesses. In the fiscal first quarter, the Aerospace Systems’ revenues increased 64.7% year over year.
Business Strategy: It has been gaining from its unique Win Strategy, which focuses on innovation, strategic positioning and distribution growth. In the first quarter of fiscal 2024, PH’s adjusted EBITDA margin increased 150 basis points year over year, driven by benefits from the Win Strategy.
Acquisition Benefits: Parker-Hannifin remains focused on acquiring businesses to gain access to new customers, regions and product lines. In September 2022, the company acquired Meggitt, a global leader in motion and control technologies. The buyout expanded PH’s presence in the UK, positioning it well to provide a broader suite of solutions for aircraft and aero-engine components and systems.
Shareholder-Friendly Policies: It remains committed to rewarding its shareholders through dividend payouts. For instance, in the first three months of fiscal 2024, the firm rewarded shareholders with dividends of $190.4 million, reflecting an increase of 11.2% year over year. Also, it hiked its quarterly dividend rate by 11% in April 2023.
Other Key Picks
We have highlighted three other top-ranked stocks from the same space, namely Graham Corporation (GHM - Free Report) , Applied Industrial Technologies, Inc. (AIT - Free Report) and Flowserve Corporation (FLS - Free Report) . While Graham sports a Zacks Rank #1 (Strong Buy), Applied Industrial and Flowserve each carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graham delivered a trailing four-quarter average earnings surprise of 264.8%. In the past 60 days, the consensus estimate for GHM’s fiscal 2024 earnings has improved 106.7%. The stock has risen 20.7% in the past three months.
Applied Industrial delivered a trailing four-quarter average earnings surprise of 13.9%. In the past 60 days, the consensus estimate for AIT’s fiscal 2024 earnings has increased 1.8%. Shares of the company have rallied 10.2% in the past three months.
Flowserve has a trailing four-quarter average earnings surprise of 27.3%. The consensus estimate for FLS’ 2023 earnings has inched up 1% in the past 60 days. Shares of the company have increased 6.1% in the past three months.
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Reasons to Add Parker-Hannifin (PH) to Your Portfolio Now
Parker-Hannifin Corporation (PH - Free Report) is poised to benefit, courtesy of strength across its end markets, strategic acquisitions and focus on operational execution. The company remains committed to investing in growth opportunities and strengthening its long-term market position.
Image Source: Zacks Investment Research
It has a market capitalization of $58.9 billion. Over the past three months, it has gained 19.2% compared with the industry’s growth of 15.8%. PH currently carries a Zacks Rank #2 (Buy).
Let’s delve into the factors that have been aiding the firm for a while now.
End-Market Strength: Parker-Hannifin’s Diversified Industrial segment has been witnessing solid demand for its products and solutions across the oil and gas, material handling, cars and light trucks and farm and agriculture markets in the North American region. Higher sales in Europe and Latin America have been boosting the segment’s sales of late. The Diversified Industrial segment’s revenues increased 3.8% year over year in the first quarter of fiscal 2024.
The company has also been witnessing solid momentum in the Aerospace Systems segment, buoyed by higher volume across commercial and military aftermarket businesses. In the fiscal first quarter, the Aerospace Systems’ revenues increased 64.7% year over year.
Business Strategy: It has been gaining from its unique Win Strategy, which focuses on innovation, strategic positioning and distribution growth. In the first quarter of fiscal 2024, PH’s adjusted EBITDA margin increased 150 basis points year over year, driven by benefits from the Win Strategy.
Acquisition Benefits: Parker-Hannifin remains focused on acquiring businesses to gain access to new customers, regions and product lines. In September 2022, the company acquired Meggitt, a global leader in motion and control technologies. The buyout expanded PH’s presence in the UK, positioning it well to provide a broader suite of solutions for aircraft and aero-engine components and systems.
Shareholder-Friendly Policies: It remains committed to rewarding its shareholders through dividend payouts. For instance, in the first three months of fiscal 2024, the firm rewarded shareholders with dividends of $190.4 million, reflecting an increase of 11.2% year over year. Also, it hiked its quarterly dividend rate by 11% in April 2023.
Other Key Picks
We have highlighted three other top-ranked stocks from the same space, namely Graham Corporation (GHM - Free Report) , Applied Industrial Technologies, Inc. (AIT - Free Report) and Flowserve Corporation (FLS - Free Report) . While Graham sports a Zacks Rank #1 (Strong Buy), Applied Industrial and Flowserve each carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graham delivered a trailing four-quarter average earnings surprise of 264.8%. In the past 60 days, the consensus estimate for GHM’s fiscal 2024 earnings has improved 106.7%. The stock has risen 20.7% in the past three months.
Applied Industrial delivered a trailing four-quarter average earnings surprise of 13.9%. In the past 60 days, the consensus estimate for AIT’s fiscal 2024 earnings has increased 1.8%. Shares of the company have rallied 10.2% in the past three months.
Flowserve has a trailing four-quarter average earnings surprise of 27.3%. The consensus estimate for FLS’ 2023 earnings has inched up 1% in the past 60 days. Shares of the company have increased 6.1% in the past three months.