Back to top

Image: Bigstock

Here's How Much a $1000 Investment in Parker-Hannifin Made 10 Years Ago Would Be Worth Today

Read MoreHide Full Article

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Parker-Hannifin (PH - Free Report) 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 (82.4% of first-quarter 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 (17.6%): 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

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Parker-Hannifin, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in November 2012 would be worth $3,656.97, or a gain of 265.70%, as of November 10, 2022, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 171.67% and gold's return of -5.46% over the same time frame.

Going forward, analysts are expecting more upside for PH.

Strong demand across end markets and higher orders bodes well for Parker-Hannifin. Pricing actions and benefits from the Win strategy support the company’s margin performance. The Meggitt acquisition is contributing significantly to Aerospace sales. The company has increased its organic growth and earnings forecast for fiscal 2023 to consider the benefits of the acquisition. The acquisition is expected to add 45 cents per share to Parker-Hannifin’s adjusted earnings in fiscal 2023. The company’s measures to reward shareholders are encouraging. Due to these tailwinds, shares of the company have outperformed its industry in the past six months. The Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2023 earnings has been revised upward in the past 60 days. However, the rising cost of sales is concerning for the company.

The stock is up 14.24% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2022. The consensus estimate has moved up as well.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Parker-Hannifin Corporation (PH) - free report >>

Published in