Parker Hannifin (PH)
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
$962.59-0.20%
Close 2026-09-04 · 1-day change
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
Intact: The reason to own it still holds.
Parker Hannifin grows sales about 11% yearly and EPS by mid-teens. Profit margins are improving, near 23.4%. The company raised EPS guidance to about $29.15 for next quarter. Free cash flow and quality remain stable.
Insider selling signals caution. Profit margin progress is slow, only 20 bps increase. The sector faces headwinds and guidance is soft. Valuation is stretched at 31x PE.
The price is about 23% above our fair value near $784 and 26% below the Street median. Analysts expect 8% revenue growth, slightly below recent 11% growth. We see some risk in margin improvement and sector headwinds.
Breaks if: EPS growth falls below mid-teens in FY26
Breaks if: Operating margin falls below 23.4% in FY26
Breaks if: YoY revenue growth falls below 7% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
PH represents a durable compounder with a focus on consistent earnings growth and margin expansion. The current thesis state is intact, supported by strong recent financial performance and management's commitment to key growth priorities.
The current valuation is stretched compared to peers, reflecting a premium of 1.16. The market appears to have low expectations for fragility, with a minor expectations gap of 0.14.
Management is on track to achieve mid-teens adjusted EPS growth and improve sales through organic growth. While recent performance has been strong, there is a moderate risk of earnings surprises trending down.
The long-term thesis hinges on the performance of sector bellwethers like GEV, TT, and EMR. Positive earnings and guidance from these companies could support PH, while negative trends could pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the outlook for mid-teens EPS growth. This reinforces the positive momentum for the company. There are no new threats impacting the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Overall, PH shows solid fundamentals and execution, but remains sensitive to sector dynamics. Not investment advice.