Here's Why Parker-Hannifin (PH) Stock is Up 34.2% in 6 Months
Parker-Hannifin Corporation PH shares have gained 34.2% in the past six months compared with the industry’s 17.1% increase.
Let’s look into the factors driving the company’s performance.
What’s Aiding PH?
The company is benefiting from effective pricing and supply-chain management actions, which have been helping it tackle challenges related to the supply chain and higher costs for a while. Also, strong demand across end markets and higher orders bode well. Continued broad-based growth in the North American region and robust organic growth in the International region are supporting the Diversified Industrial segment. Revenues in the Aerospace Systems segment are benefiting from the robust original equipment manufacturer (OEM) and Maintenance, Repair and Operations commercial activity.
The company’s unique Win Strategy (version 3.0 launched in fiscal 2020), which focuses on innovation, strategic positioning, distribution growth and incentive plan changes to drive organic growth, is supporting its margin performance.
Parker-Hannifin completed the acquisition of Meggitt plc in September 2022, which is a global leader in motion and control technologies. The buyout expanded Parker-Hannifin’s presence in the UK, positioning it well to provide a broader suite of solutions for aircraft and aero engine components and systems. The acquisition boosted Aerospace Systems sales by 82.2% in the fiscal second quarter of 2023 (ended Dec 31, 2022).
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PH utilizes its cash flow to reward its shareholders through dividend payouts and share-repurchase programs. In the first six months of fiscal 2023, the company distributed cash dividends worth $342.36 million, up 28.9% from the year-ago period. Also, the quarterly dividend was hiked 29% or 30 cents to $1.33 per share in April 2022.
Zacks Rank and Stocks to Consider
PH currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector are discussed below:
Deere & Company DE presently sports a Zacks Rank #1 (Strong Buy). DE’s earnings surprise in the last four quarters was 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, estimates for Deere & Company’s fiscal 2023 earnings have increased 8.6%. The stock has rallied 18.9% in the past six months.
Alamo Group Inc. ALG presently sports a Zacks Rank of 1. ALG’s earnings surprise in the last four quarters was 6.0%, on average.
In the past 60 days, estimates for Alamo’s fiscal 2023 earnings have increased 7.5%. The stock has gained 45.7% in the past six months.
Allegion plc ALLE presently carries a Zacks Rank #2 (Buy). ALLE’s earnings surprise in the last four quarters was 10.3%, on average.
In the past 60 days, estimates for Allegion’s fiscal 2023 earnings have increased 4.1%. The stock has gained 15.2% in the past six months.
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Parker-Hannifin Corporation (PH) : Free Stock Analysis Report
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