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

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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.

Based in Cleveland, OH, Parker-Hannifin Corporation is a global diversified manufacturer of motion and control technologies and systems. The company provides precision engineered solutions for a wide variety of mobile, industrial and aerospace markets. On a geographical basis, the company has operations in North America (66.5% of 2023 net sales), Europe (19.9%), the Asia Pacific (12.5%) and Latin America (1.1%).

The 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 an extensive distribution network serving 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.

The Aerospace Systems Segment (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, lubrication components and electric power applications 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.

According to our calculations, a $1000 investment made in September 2014 would be worth $5,174.14, or a 417.41% gain, as of September 3, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 182.10% and the price of gold went up 89.35% over the same time frame.

Analysts are forecasting more upside for PH too.

Parker-Hannifin is benefiting from steady demand in the commercial and military end markets across both OEM and aftermarket channels. Synergies from the Meggitt buyout are clearly helping. The Win strategy is driving its margins and allowing it to continue returning value to shareholders. In April 2024, Parker-Hannifin hiked its quarterly dividend rate by 10% to $1.63 per share. Due to these positives, its shares have outperformed the industry in the year-to-date period. However, we are concerned about the softening of the Diversified Industrial segment, especially in view of the soft construction and agricultural sectors and the decrease in demand for automotive cars and light trucks. The company’s weak liquidity position is an added woe. Also, given its international presence, foreign currency headwinds are concerning for the company.

The stock is up 18.54% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2024. The consensus estimate has moved up as well.

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