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Here's Why You Should Consider Investing in Parker-Hannifin Now

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Key Takeaways

  • PH's Aerospace segment benefits from steady commercial and military demand across markets.
  • Acquisitions of Filtration Group and Curtis Instruments expand PH's capabilities and reach.
  • PH boosts margins and returns cash through higher dividends and sizable share buybacks.

Parker-Hannifin Corporation (PH - Free Report) is well-positioned to benefit from strength in the Aerospace segment and accretive acquisitions. The company’s shareholder-friendly moves also augur well.

Shares of PH have gained 35% compared with the industry’s 8.1% growth in the year-to-date period.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s delve into the factors that make this Zacks Rank #2 (Buy) company a smart investment choice at the moment.

Business Strength: PH’s Aerospace Systems segment is gaining from steady demand across end markets and higher orders. The segment is benefiting from strong momentum in commercial and military end markets across both OEM and aftermarket channels. In the quarters ahead, the segment is likely to aid 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 also likely to be beneficial.

Expansion Initiatives: The company solidified its product portfolio and leveraged business opportunities by adding assets. In November 2025, PH inked a deal to acquire Filtration Group Corp. The acquisition is expected to enhance Parker-Hannifin’s industrial filtration capabilities and expand its presence in key growth markets. The deal is expected to close in six-12 months, subject to customary closing conditions. In September 2025, Parker-Hannifin completed the acquisition of Curtis Instruments from Rehlko. 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.

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 Parker-Hannifin's long-term and sustainable growth. It supports the company’s margin performance. In the first quarter of fiscal 2026 (ended September 2025), the operating margin increased 160 basis points year over year to 24.2%.

Rewards to Shareholders: Parker-Hannifin is committed to returning value to shareholders through share repurchases and dividends. In the first three months of fiscal 2026, it paid out cash dividends of $228 million, up 8.6% year over year. In the same period, the company bought back shares worth $475 million. In April 2025, PH hiked its dividend by 10% to $1.80 per share (annually: $7.20).

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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 9.3%. In the past 60 days, the Zacks Consensus Estimate for Crane’s 2025 earnings has increased 2.9%.

Helios Technologies, Inc. (HLIO - Free Report) presently sports a Zacks Rank of 1. HLIO delivered a trailing four-quarter average earnings surprise of 16.8%.

In the past 60 days, the consensus estimate for Helios’ 2025 earnings has increased 2.5%.

Dover Corporation (DOV - Free Report) presently carries a Zacks Rank of 2. DOV delivered a trailing four-quarter average earnings surprise of 6.2%.

In the past 60 days, the consensus estimate for Dover’s 2025 earnings has increased 1.4%.

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