What Analysts Are Saying About Parker Hannifin Stock

7 analysts have shared their evaluations of Parker Hannifin PH during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Parker Hannifin, revealing an average target of $528.57, a high estimate of $575.00, and a low estimate of $500.00. This current average reflects an increase of 7.3% from the previous average price target of $492.60.

Deciphering Analyst Ratings: An In-Depth Analysis

In examining recent analyst actions, we gain insights into how financial experts perceive Parker Hannifin. The following summary 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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Parker Hannifin compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Parker Hannifin's stock. This analysis reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Parker Hannifin's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Parker Hannifin analyst ratings.

Discovering Parker Hannifin: A Closer Look

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.

Unraveling the Financial Story of Parker Hannifin

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Parker Hannifin's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 14.52%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Parker Hannifin's net margin excels beyond industry benchmarks, reaching 13.43%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Parker Hannifin's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.23% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Parker Hannifin's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 2.19%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Parker Hannifin's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.15, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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