Core Insights - Parker-Hannifin Corporation is highlighted as a stock to consider before its anticipated split, with TD Cowen raising its price target to $650 from $575 while maintaining a Hold rating [1] - The company reported record-breaking results for both Q4 and the full fiscal year 2025, indicating strong financial performance [1] Financial Performance - Total revenue for the fiscal year reached $19.9 billion, with an adjusted segment operating margin of 26.1%, up 1.2% from the previous year [2] - Cash flow from operations was a record $3.8 billion, and free cash flow amounted to $3.3 billion, representing 16.8% of sales and a 109% conversion rate [2] - Adjusted EPS increased by 7% year-over-year, and the company ended the fiscal year with a record backlog of $11 billion [2] Segment Performance - The Aerospace segment was a significant contributor to the company's success, achieving record sales of $6.2 billion and 13% organic growth for the fiscal year, with a backlog of $7.4 billion [3] - The Industrial segment faced negative organic growth, but its adjusted segment operating margin reached a record 25.1%, an increase of 0.9% [3] Company Overview - Parker-Hannifin Corporation specializes in manufacturing and selling motion and control technologies and systems across various markets, including aerospace and defense, industrial equipment, transportation, energy, and HVAC [4]

Group 1: Stock Split Overview - A stock split is an action where a company splits its existing shares into multiple new shares, making the stock more accessible to investors [1] - A forward stock split lowers the price per share, with examples such as a 2-for-1 split or a 10-for-1 split, which do not alter the company's market capitalization or total value of holdings [1] - While a stock split may lead to short-term increases in trading volume and positive investor sentiment, it does not guarantee long-term performance improvements [1] Group 2: Market Insights from Bob Keiser - Bob Keiser, co-chief investment officer at Aspire Strategist Portfolios, has been bullish on large-cap core and growth stocks for two years, citing them as primary drivers of earnings growth [2] - Keiser believes that a predicted Fed interest rate cut will not significantly alter the macro trend of growth in these sectors, although it will be a positive factor [2] - The top 10 stocks in the index account for approximately 40% of its market capitalization, driven by the tech and growth sector expected to post four consecutive quarters of double-digit earnings growth [3] Group 3: Earnings Growth Projections - Consensus expectations forecast a third consecutive year of double-digit earnings growth in 2026, with S&P 500 earnings projected to reach $300 per share [3] - The anticipated broadening of earnings growth beyond the tech sector includes contributions from industrials, materials, and financials, which is necessary for achieving the $300 per share target [3] Group 4: Stock Recommendations - A list of stocks trading over $400 that could potentially split was compiled, focusing on those with significant price surges and a history of stock splits [6] - The methodology emphasizes stocks popular among elite hedge funds, with a strategy that has outperformed the market significantly since May 2014 [7] Group 5: Company-Specific Highlights - Parker-Hannifin Corporation (NYSE:PH) reported total revenue of $19.9 billion for FY2025, with a record adjusted segment operating margin of 26.1% and a backlog of $11 billion [10][11] - W.W. Grainger Inc. (NYSE:GWW) achieved total sales of approximately $4.6 billion in Q2 2025, marking a 5.6% year-over-year increase, despite a decline in operating margin to 14.9% [13][14]