U.S. markets closed
  • S&P 500

    4,247.44
    +8.26 (+0.19%)
     
  • Dow 30

    34,479.60
    +13.36 (+0.04%)
     
  • Nasdaq

    14,069.42
    +49.09 (+0.35%)
     
  • Russell 2000

    2,335.81
    +24.40 (+1.06%)
     
  • Crude Oil

    70.78
    +0.49 (+0.70%)
     
  • Gold

    1,879.50
    -16.90 (-0.89%)
     
  • Silver

    28.05
    +0.02 (+0.07%)
     
  • EUR/USD

    1.2107
    -0.0071 (-0.58%)
     
  • 10-Yr Bond

    1.4620
    +0.0030 (+0.21%)
     
  • GBP/USD

    1.4117
    -0.0060 (-0.42%)
     
  • USD/JPY

    109.6350
    +0.2870 (+0.26%)
     
  • BTC-USD

    35,423.10
    -1,425.32 (-3.87%)
     
  • CMC Crypto 200

    924.19
    -17.62 (-1.87%)
     
  • FTSE 100

    7,134.06
    +45.88 (+0.65%)
     
  • Nikkei 225

    28,948.73
    -9.83 (-0.03%)
     

A Look Into Parker Hannifin's Price Over Earnings

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
  • Oops!
    Something went wrong.
    Please try again later.

 

In the current session, Parker Hannifin Inc. (NYSE: PH) is trading at $277.49, after a 1.02% spike. Over the past month, the stock increased by 5.46%, and in the past year, by 36.21%. With performance like this, long-term shareholders optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.

Assuming that all other factors are held constant, this could present itself as an opportunity for shareholders trying to capitalize on the higher share price. The stock is currently under from its 52 week high by 1.00%

The P/E ratio is used by long-term shareholders to assess the company’s market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E indicates that shareholders do not expect the stock to perform better in the future, and that the company is probably undervalued. It shows that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings. 

View more earnings on PH

Depending on the particular phase of a business cycle, some industries will perform better than others. 

Parker Hannifin Inc. has a lower P/E than the aggregate P/E of 46.12 of the Machinery industry. Ideally, one might believe that the stock might perform worse than its peers, but it’s also probable that the stock is undervalued. 

Price to earnings ratio is not always a great indicator of the company's performance. Depending on the earnings makeup of a company, investors can become unable to attain key insights from trailing earnings.

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.