Key Takeaways From Parker Hannifin Analyst Ratings

Parker Hannifin PH underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $502.0, a high estimate of $551.00, and a low estimate of $470.00. Witnessing a positive shift, the current average has risen by 5.8% from the previous average price target of $474.50.

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of Parker Hannifin's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Parker Hannifin. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Parker Hannifin compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Parker Hannifin's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Parker Hannifin's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Parker Hannifin analyst ratings.

About Parker Hannifin

Parker Hannifin is an industrial conglomerate operating through two segments: diversified industrial, which serves a variety of end markets, and aerospace systems, which sells engine and actuation components. The diversified industrial segment consists of six groups, including engineered materials (sealing devices), filtration (filters and systems monitoring and removing contaminants from liquids and gases), fluid connectors (valves, couplings, and other fittings), instrumentation (flow manufacturing components and fluid control applications), and motion systems (hydraulic, pneumatic, and electromechanical components in industrial machinery and equipment). The segment boasts 17,100 independent distributors, and about 40% of its business occurs outside the United States.

Financial Insights: Parker Hannifin

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Parker Hannifin displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 14.52%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Parker Hannifin's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 13.43%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 6.23%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Parker Hannifin's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 2.19%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.15, caution is advised due to increased financial risk.

The Basics of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.