Here's How Much You'd Have If You Invested $1000 in Parker-Hannifin a Decade Ago
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Parker-Hannifin (PH) ten years ago? It may not have been easy to hold on to PH for all that time, but if you did, how much would your investment be worth today?
Parker-Hannifin's Business In-Depth
With that in mind, let's take a look at Parker-Hannifin's main business drivers.
Parker-Hannifin Corporation is a global diversified manufacturer of motion & control technologies and systems. The company provides precision engineered solutions for a wide variety of mobile, industrial and aerospace markets.
Diversified Industrial Segment (77.1% of fiscal 2023 sales): This segment is engaged in the production of a wide range of motion-control and fluid systems & components. The products offered by this segment are used in transportation, mobile construction, refrigeration and air conditioning, agriculture and other markets.
The segment sells its products through two main channels, namely, original equipment manufacturers (OEMs) and extensive distribution network to smaller OEMs and the aftermarket.
Products offered include sealing devices (dynamic and static); filters, systems and instruments to monitor and remove contaminants from fuel, air, oil, water and other liquids and gases; fluid connectors that control, transmit and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; and high-quality flow control solutions.
Aerospace Systems (22.9%): This segment supervises the designing and manufacturing of products and also provides aftermarket support for a broad range of aerospace products including commercial, business jet, military and general aviation aircraft and missile.
Products offered include control actuation systems & components, fluid metering, delivery & atomization devices, fuel systems & components, pneumatic control components, hydraulic systems & components and lubrication components among others.
The segment's products and services are offered to OEM and maintenance, repair and overhaul (MRO) customers throughout the world. Notably, the products are marketed by field sales employees and are sold to manufacturers as well as end customers.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Parker-Hannifin ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in November 2013 would be worth $3,655.96, or a gain of 265.60%, as of November 27, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 152.63% and the price of gold went up 54.01% over the same time frame.
Analysts are forecasting more upside for PH too.
Parker-Hannifin is benefiting from higher demand from distributors and end users across the oil and gas, material handling, cars and light trucks, and farm and agriculture markets in the North American region within the Diversified Industrial segment. Higher volume across all businesses, especially the commercial and military aftermarket businesses bolstered the company’s Aerospace Systems unit. Synergies from the Meggitt buyout (September 2022) are also aiding the company. Benefits from the Win strategy are driving Parker-Hannifin’s margins. The company’s measures to add shareholder value hold promise. However, the escalating cost of sales and rising selling, general and administrative expenses pose a threat to its bottom line. Foreign currency headwinds may dent PH’s top line. A weak liquidity position is also worrisome.
The stock has jumped 18.41% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Parker-Hannifin Corporation (PH) : Free Stock Analysis Report
