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Cleveland-based Parker-Hannifin Corporation (PH), with a market cap of nearly $91 billion, is a global leader in motion and control technologies. Serving industrial, mobile, and aerospace markets, Parker delivers precision-engineered solutions through its Diversified Industrial and Aerospace Systems segments.
From motion-control systems powering agriculture and construction to advanced aerospace components supporting commercial and military aviation, Parker blends innovation with reliability. Its dual-channel strategy - serving original equipment manufacturers (OEMs) and aftermarket networks - underscores its pivotal role in driving progress across diverse industries.
Shares of Parker-Hannifin have climbed 62.6% over the past 52 weeks and 52.4% on a YTD basis, outshining the broader S&P 500 Index ($SPX), which rallied 32.1% over the past year and returned 26.2% in 2024.
Narrowing the focus, PH stock also outperformed the Invesco Aerospace & Defense ETF’s (PPA) 38% gains over the past year and 30.6% returns on a YTD basis.
Parker-Hannifin’s shares have outpaced the broader market, driven by strategic acquisitions that expanded its global reach, particularly in industrial automation. With a track record of revenue and net income growth, fueled by rising demand for its motion and control technologies, the company solidified its position as an industry leader.
Additionally, Parker-Hannifin’s commitment to shareholder value is evident in its 68 consecutive years of dividend increases, reinforcing stability and resilience. On Oct. 23, the company announced a quarterly dividend of $1.63 per share, marking its 298th consecutive payment. This blend of operational success and consistent shareholder returns has made PH stock a solid performer.
Moreover, after a stellar fiscal Q1 2025 earnings report on Oct. 31, PH stock edged up. While total net sales of $4.9 billion, up 1.2% year over year, came in line with the projections, its adjusted EPS climbed 4% to $6.20, also beating estimates. In Q3, cash flow from operations was 15.2% of sales, an increase of 14% to $744 million. Furthermore, given its strong first-quarter performance, the company raised the fiscal 2025 outlook for segment operating margin and EPS.
For the current fiscal year, ending in June 2025, analysts expect Parker-Hannifin’s bottom line to rise 5.2% year over year to $26.77 per share. Moreover, the company's earnings surprise history is robust, as it has exceeded consensus estimates in each of the last four quarters.
Among the 18 analysts covering PH stock, the overall consensus is a “Strong Buy.” The current rating is based on 14 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
The overall configuration has been consistent over the past few months.
On Nov. 13, UBS (UBS) initiated coverage of Parker-Hannifin stock with a “Buy” rating and a Street-high $842 price target, signaling a 19.1% upside. UBS highlights the company’s earnings growth potential at a “favorable valuation,” driven by robust aerospace momentum, industrial’s return to growth, and opportunities for strategic acquisitions. Confident in Parker-Hannifin’s trajectory, UBS believes the high end of the fiscal 2025 guidance is within reach, cementing the firm’s optimistic outlook.
The mean price target of $739.53 implies an upside potential of 4.6% from the current levels.
