You've Never Heard Anyone Brag About Owning These 2 Stocks, but $1,000 Invested a Decade Ago Would Have Made You Very Happy - 24/7 Wall St. S&P 5006,580.00 -0.18% Dow Jones46,173.00 -0.22% Nasdaq 10024,183.40 -0.17% Russell 20002,488.99 -0.24% FTSE 1009,923.40 -0.34% Nikkei 22552,770.50 -0.96% Investing You've Never Heard Anyone Brag About Owning These 2 Stocks, but $1,000 Invested a Decade Ago Would Have Made You Very Happy By Trey ThoelckePublished Mar 24, 7:50AM EDT Quick Read Parker Hannifin (PH) posted ...

Parker-Hannifin (PH) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a ch ...

Core Insights - Parker Hannifin is recognized as a strong compounder story in the investment community, continuing to perform well under the leadership of CEO Jennifer Parmentier [1] Company Overview - Parker Hannifin operates through three main business segments: Aerospace Systems (31%), Diversified Industrial International (approximately 30%), and Diversified Industrial North America (approximately 40%) [2] - The company is structured around four technology platforms: Motion Systems (17%), Aerospace (31%), Flow and Process Control (23%), and Filtration and Engineered Materials (approximately 30%) [3]

Summary of Parker Hannifin Conference Call Company Overview - **Company**: Parker Hannifin - **CEO**: Jennifer Parmentier - **Business Segments**: - Aerospace Systems: 31% - Diversified Industrial International: ~30% - Diversified Industrial North America: ~40% [2][5] Core Business Insights - **Technology Platforms**: Four main platforms include Motion Systems (17%), Aerospace (31%), Flow and Process Control (23%), and Filtration and Engineered Materials (~30%) [3] - **Win Strategy**: A guide to operational excellence that emphasizes decentralized decision-making with 85 general managers who are P&L owners [4][3] - **Market Position**: Number one in the motion and control industry with projected sales of approximately $21 billion [5] Financial Performance - **Revenue Growth**: 6% CAGR over the last 10 years, with 1,150 basis points of adjusted operating margin expansion and 16% EPS CAGR [6] - **Acquisitions Impact**: 60% of EPS performance from legacy businesses, 40% from acquisitions like LORD, CLARCOR, Exotic, Meggitt, and Curtis [7] Market Dynamics - **Aerospace Growth**: Fourth consecutive year of double-digit growth, with a strong focus on commercial OEM [16] - **Industrial Recovery**: Gradual recovery noted, with organic growth increasing from 3% to 5% for total Parker and from 2%-2.5% for North America [17][19] - **Positive Distributor Sentiment**: Strong quoting activity and inventory management observed [16] Pricing and Cost Environment - **Pricing Strategy**: Strong pricing capabilities to manage tariffs and inflation without impacting margins [21] - **Distribution Channel**: Normal pricing environment has returned after hyperinflationary periods, with no significant pushback reported [21] Acquisition Strategy - **Filtration Group Acquisition**: Expected to close within 6-12 months, targeting 11% synergies due to the integration of existing Parker divisions [132][141] - **Curtis Acquisition**: Positive impact on EPS, initially dilutive to margins but on track for financial goals [43][44] Macro Environment - **Geopolitical Concerns**: Safety of team members prioritized amid geopolitical tensions, with a positive outlook on the defense business [11][12] - **Market Conditions**: Uncertainty around tariffs and interest rates affecting customer decisions [62] International Business - **Growth in International Markets**: Positive orders for six consecutive quarters, with strong performance in Europe and Asia-Pacific [88][90] - **China and India**: Notable growth in China driven by automotive and electronics, with a strong manufacturing presence in India [92][93] Future Outlook - **Gradual Recovery**: Anticipated smooth operational ramp-up with a focus on customer demand and supply chain visibility [94] - **Continued M&A Activity**: Ongoing evaluation of potential acquisitions that align with Parker's strategic goals [161][165] Additional Insights - **Life Sciences Market**: Increased focus on biopharma reshoring and diagnostic testing post-Filtration Group acquisition [121][122] - **Energy Sector**: 7% of total sales from energy, with a robust backlog in power generation [80][84] This summary encapsulates the key points discussed during the Parker Hannifin conference call, highlighting the company's strategic direction, financial performance, market dynamics, and future outlook.

PARKER HANNIFIN CORPORATION Bank of America Global Industrials Conference Jenny Parmentier | Chairman & Chief Executive Officer | March 18th, 2026 Forward-Looking Statements and Non-GAAP Financial Measures Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of fo ...

Core Viewpoint - Parker Hannifin Corporation is scheduled to present at the Bank of America Global Industrials Conference on March 18, 2026, highlighting its position as a leader in motion and control technologies [1]. Company Overview - Parker Hannifin is recognized as a Fortune 250 global leader in motion and control technologies, with a history of over a century in enabling engineering breakthroughs [2]. - The company has a notable track record of increasing its annual dividend per share for 69 consecutive fiscal years, ranking among the top five longest-running dividend-increase records in the S&P 500 index [2]. Contact Information - Media inquiries can be directed to Aidan Gormley, Director of Global Communications and Branding, at 216-896-3258 or via email at aidan.gormley@parker.com [3]. - Financial analysts can contact Jeff Miller, Vice President of Investor Relations, at 216-896-2708 or via email at jeffrey.miller@parker.com [3].

Core Viewpoint - Parker Hannifin Corporation is scheduled to present at the Bank of America Global Industrials Conference on March 18, 2026, highlighting its position as a leader in motion and control technologies [1]. Company Overview - Parker Hannifin is a Fortune 250 company recognized as a global leader in motion and control technologies, with over a century of experience in enabling engineering breakthroughs [2]. - The company has a strong track record of increasing its annual dividend per share for 69 consecutive fiscal years, ranking among the top five longest-running dividend-increase records in the S&P 500 index [2].

Core Insights - Parker-Hannifin Corporation (PH) is positioned to benefit from strong business performance, strategic acquisitions, and a commitment to operational excellence, focusing on growth opportunities to solidify its market position [1] End-Market Strength - The Aerospace Systems segment has experienced robust growth, with revenues increasing approximately 14.5% year over year in Q2 of fiscal 2026, and management anticipates an 11% organic sales increase for the segment in fiscal 2026 [2] Acquisition Benefits - The company is actively pursuing acquisitions to expand its customer base and product offerings, including the acquisition of Filtration Group Corp. in November 2025, which will enhance its industrial filtration capabilities [3] - In September 2025, Parker-Hannifin completed the acquisition of Curtis Instruments for about $1 billion, which will improve its industrial electrification portfolio and market reach [4] Secular Growth Trends - PH has doubled its portfolio in aerospace, filtration, and engineered materials over recent years, strategically shifting towards longer-cycle products to achieve stable revenue streams, supported by secular growth trends [5] Price Performance - Over the past year, Parker-Hannifin's shares have surged by 53%, outperforming the industry growth of 23.8% [9] - The company has returned $456 million in dividends and $550 million through share buybacks in FY26, reflecting its commitment to shareholder value [8][9]

Industry Overview - The U.S. manufacturing sector is showing signs of recovery after struggling for three years, with rising demand boosting manufacturing activity despite concerns over high prices and a shrinking labor market [1] - The Manufacturing – General Industrial industry is currently ranked in the top 27% of the Zacks Industry Rank, indicating potential outperformance in the market over the next three to six months [2] Investment Opportunities - Five stocks from the manufacturing industry with favorable Zacks Rank are recommended for investment: Parker-Hannifin Corp. (PH), Nordson Corp. (NDSN), Watts Water Technologies Inc. (WTS), Flowserve Corp. (FLS), and Trimble Inc. (TRMB), all carrying a Zacks Rank 2 (Buy) [3] Manufacturing Activity Metrics - The ISM Manufacturing PMI expanded for the second consecutive month in February, registering at 52.4%, slightly below January's 52.6% but above the Zacks Consensus Estimate of 51.6% [4] - In January, the ISM Manufacturing Index showed a significant jump to 52.6% from 47.9% in December, marking the strongest reading since 2022, with the New Orders Index rising to 57.1% from 47.4% [5] Company-Specific Insights Parker-Hannifin Corp. (PH) - PH is benefiting from steady demand in the Aerospace segment, with a revenue growth rate of 7.1% and earnings growth rate of 13.2% expected for the current year [10][11] - The company increased its quarterly dividend rate by 10% to $1.80 per share in April 2025, reflecting its commitment to returning value to shareholders [10] Nordson Corp. (NDSN) - NDSN is well-positioned due to strong demand in its Medical and Fluid Solutions segment, with expected revenue and earnings growth rates of 4.9% and 10.8%, respectively, for the current year [12][13] Watts Water Technologies Inc. (WTS) - WTS is experiencing growth from recent acquisitions and anticipates over $130 million in incremental revenues for 2026, with expected revenue and earnings growth rates of 10.9% and 9.7%, respectively [14][15] Flowserve Corp. (FLS) - FLS is gaining strength across its segments, particularly in the Pump Division, with expected revenue and earnings growth rates of 6.3% and 12.9%, respectively, for the current year [16][17] Trimble Inc. (TRMB) - TRMB benefits from strong growth in recurring revenue streams and a focus on AI-driven solutions, with expected revenue and earnings growth rates of 7.6% and 12.8%, respectively, for the current year [18][19]

Company Overview - Parker-Hannifin Corporation (PH) has a market cap of $127.4 billion and is a global manufacturer of motion and control technologies serving various markets including aerospace, defense, industrial equipment, transportation, energy, and HVAC and refrigeration [1] - The company operates through its Diversified Industrial and Aerospace Systems segments, offering a wide range of products such as filtration, sealing, fluid conveyance, actuation, control, and thermal management solutions [1] Stock Performance - Parker-Hannifin shares have decreased by 2.5% from their 52-week high of $1,034.96, but have surged 17.8% over the past three months, outperforming the Nasdaq Composite's decline of 3.5% during the same period [3] - Year-to-date, PH stock has gained 15.1%, while the Nasdaq Composite has decreased by 2.8% [3] - Over the past 52 weeks, PH stock has increased by 51.3%, compared to the Nasdaq Composite's gain of 19.9% [3] - The stock has consistently traded above its 50-day and 200-day moving averages since May 2025 [4] Financial Performance - In fiscal Q2 2026, Parker-Hannifin reported record sales of $5.2 billion, representing a 9% increase, and adjusted EPS of $7.65, which is up 17% [5] - The adjusted segment operating margin improved to 27.1%, indicating a significant enhancement in profitability [5] - The company experienced strong order growth of 9%, with aerospace orders increasing by 14%, and a record backlog of $11.7 billion, reflecting sustained demand, particularly in aerospace and defense markets [5] Future Outlook - Management has upgraded the full-year fiscal 2026 guidance, with adjusted EPS now expected to be in the range of $30.40 to $31, along with higher sales and margin outlooks [6] - In comparison, rival Illinois Tool Works Inc. (ITW) has slightly outperformed PH stock on a year-to-date basis with a gain of 17.6%, but has lagged behind PH stock with a 52-week return of 9.7% [6]