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Here's Why It is Appropriate to Invest in Parker-Hannifin Stock

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Key Takeaways

  • Parker-Hannifin's Aerospace Systems unit is thriving across commercial, military and aftermarket channels.
  • The Curtis Instruments acquisition expands PH's electrification and motion control capabilities.
  • PH's Win Strategy 3.0 and higher dividends underscore its focus on growth and shareholder value.

Parker-Hannifin Corporation (PH - Free Report) is benefiting from strength in the Aerospace Systems segment. Benefits from acquired assets are likely to drive its performance in the quarters ahead.

PH currently carries a Zacks Rank #2 (Buy). In the past year, the company has gained 20.0% compared with the industry’s 5.5% growth.

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Let’s delve into the factors that make this company a smart investment choice at the moment.

Business Strength: PH’s Aerospace Systems segment is gaining from strong momentum in the commercial and military end markets across both OEM and aftermarket channels. In the quarters ahead, the segment is poised to gain from strong demand for its products and aftermarket support services in the general aviation market, driven by growth in air transport activities. Strength in its defense end market, owing to stable U.S. and international defense spending volumes, is likely to be beneficial as well.

Expansion Efforts: Acquisitions have been the company's preferred mode of business expansion to date. In September 2025, Parker-Hannifin completed the acquisition of Curtis Instruments. The inclusion of Curtis’ advanced control solutions enables the company to enhance its industrial electrification portfolio and expand its reach in in-plant material handling and off-highway markets. This acquisition will also strengthen Parker-Hannifin’s electric motor and motion control capabilities, allowing it to provide more comprehensive electric and hybrid solutions to its customers.

Gains from Win Strategy: In the quarters ahead, PH is likely to gain from its Win Strategy (version 3.0), which focuses on innovation, strategic positioning, distribution growth and incentive plan changes to drive organic growth. The Win strategy is a business system that defines goals and initiatives, enabling the company’s long-term and sustainable growth. It supports Parker-Hannifin’s margin performance. In the fourth quarter of fiscal 2025 (ended June 2025), the operating margin increased 170 basis points year over year to 23.9%.

Rewards to Shareholders: The company’s commitment to rewarding shareholders through dividends and share buybacks is encouraging. In fiscal 2025, Parker-Hannifin rewarded its shareholders with dividends of $861 million, up 10.1%. The company repurchased shares worth $851 million in the same period. In April 2025, the company hiked its dividend by 10% to $1.80 per share.

Other Stocks to Consider

Some other top-ranked companies are discussed below.

Crane Company (CR - Free Report) currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CR delivered a trailing four-quarter average earnings surprise of 7.5%. In the past 60 days, the Zacks Consensus Estimate for Crane’s 2025 earnings has increased 0.9%.

Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 5.5%.

In the past 60 days, the consensus estimate for Flowserve’s 2025 earnings has increased by 0.9%.

Nordson Corporation (NDSN - Free Report) presently carries a Zacks Rank of 2. NDSN delivered a trailing four-quarter average earnings surprise of 3.2%.

In the past 60 days, the consensus estimate for Nordson’s fiscal 2025 earnings has increased 1%.

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