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Here's How Much You'd Have If You Invested $1000 in Parker-Hannifin a Decade Ago
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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 factor that can influence investors is FOMO, or the fear of missing out, especially with 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 (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
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.
According to our calculations, a $1000 investment made in April 2014 would be worth $4,531.64, or a gain of 353.16%, as of April 4, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 175.92% and the price of gold increased 69.42% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for PH.
Parker-Hannifin is benefiting from steady demand across end markets and higher orders. Strong momentum in the commercial aftermarket is aiding the Aerospace Systems unit. Effective cost management policies are driving the company’s Diversified Industrial segment. Benefits from the Win strategy are driving Parker-Hannifin’s margins. Synergies from the Meggitt buyout (September 2022) are also aiding the company. The five growth drivers, i.e., the Win strategy, macro-CapEx reinvestment, acquisitions and secular growth trends are likely to help Parker-Hannifin achieve 4-6% organic growth by fiscal 2027. Its measures to add shareholder value hold promise. However, weakness in the off-highway end market is affecting the Diversified Industrial North America segment. The escalating cost of sales pose a threat to its bottom line.
The stock is up 5.15% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2024. The consensus estimate has moved up as well.
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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 factor that can influence investors is FOMO, or the fear of missing out, especially with 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 (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
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.
According to our calculations, a $1000 investment made in April 2014 would be worth $4,531.64, or a gain of 353.16%, as of April 4, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 175.92% and the price of gold increased 69.42% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for PH.
Parker-Hannifin is benefiting from steady demand across end markets and higher orders. Strong momentum in the commercial aftermarket is aiding the Aerospace Systems unit. Effective cost management policies are driving the company’s Diversified Industrial segment. Benefits from the Win strategy are driving Parker-Hannifin’s margins. Synergies from the Meggitt buyout (September 2022) are also aiding the company. The five growth drivers, i.e., the Win strategy, macro-CapEx reinvestment, acquisitions and secular growth trends are likely to help Parker-Hannifin achieve 4-6% organic growth by fiscal 2027. Its measures to add shareholder value hold promise. However, weakness in the off-highway end market is affecting the Diversified Industrial North America segment. The escalating cost of sales pose a threat to its bottom line.
The stock is up 5.15% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2024. The consensus estimate has moved up as well.