PH Stock Analysis — Parker Hannifin
Sector: Industrials
AI Verdict
You’re paying a steep premium for rapid earnings growth, and while Parker’s OEM integration makes that growth credible, the price leaves little margin for disappointment.
Competitive Moat
Parker Hannifin specializes in motion and control technologies, supplying mission-critical components for aerospace, industrial, and mobile equipment. Its moat comes from deep integration with OEMs and high switching costs due to custom engineering and certification requirements in regulated industries.
Summary
A 30.9% forward EPS growth forecast is drawing attention to Parker Hannifin’s premium valuation.
Where It Stands
The stock is up 42.07% over the past year, trades at 28.3x next year's earnings versus a 20x industrials median, and its RSI of 67.1 signals elevated pullback risk.
Key Metrics
- RSI: 67.1 — Near Overbought
- Trailing P/E: 37.0x
- Forward P/E: 28.3x
- PEG Ratio: 1.18
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Market Cap: $133.5B
- Dividend Yield: 0.01%
- 1-Year Return: 42.07%
- 52-Week High: $1099.94
- 52-Week Low: $715.37
Analyst Consensus
27 Buy · 7 Hold · 0 Sell (34 analysts)
Bull Case
You’re paying 28.3x forward earnings for 30.9% expected EPS growth, a rare combination in the industrials sector.
Bear Case
If the P/E reverts to the sector median of 20x, that implies a 29% downside from current levels even before considering the RSI of 67.1, which suggests the stock is at risk of a technical pullback.
Catalyst to Watch
Watch for quarterly earnings surprises or large contract wins, as either could justify or challenge the current growth premium.