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If You Invested $1000 in Parker-Hannifin a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
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 - 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
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 December 2012 would be worth $3,638.95, or a 263.90% gain, as of December 1, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 188.11% and gold's return of -0.75% 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.
Over the past four weeks, shares have rallied 5.43%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Parker-Hannifin a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
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 - 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
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 December 2012 would be worth $3,638.95, or a 263.90% gain, as of December 1, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 188.11% and gold's return of -0.75% 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.
Over the past four weeks, shares have rallied 5.43%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.