PH Stock Analysis — Parker Hannifin
Sector: Industrials
AI Verdict
Parker Hannifin trades at 27.9x next year's earnings while analysts expect 26.7% EPS growth—you're paying up, but the price is fair if its entrenched industrial position keeps delivering.
Competitive Moat
Parker Hannifin dominates in motion and control technologies, supplying mission-critical components for aerospace, industrial, and process automation where reliability and certification create high switching costs. Its deep integration with OEMs and extensive aftermarket service network make it hard for competitors to displace.
Summary
Parker Hannifin's 27.9x forward P/E is drawing attention as analysts expect a 26.7% jump in earnings next year.
Where It Stands
Shares are up 35.45% over the past year with an RSI of 60.8 (neutral), and the stock trades at 27.9x forward earnings versus the industrial sector median of 20x.
Key Metrics
- RSI: 60.8 — Near Overbought
- Trailing P/E: 35.3x
- Forward P/E: 27.9x
- PEG Ratio: 1.30
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Market Cap: $120.7B
- Dividend Yield: 0.01%
- 1-Year Return: 35.45%
- 52-Week High: $1034.96
- 52-Week Low: $692.02
Analyst Consensus
27 Buy · 7 Hold · 0 Sell (34 analysts)
Bull Case
With forward EPS growth pegged at 26.7% and a forward P/E of 27.9x, you're paying a fair price for above-average earnings momentum if Parker's OEM relationships keep driving orders.
Bear Case
If the P/E multiple contracts from 27.9x to the sector median of 20x, the stock could lose roughly 28% even if earnings meet expectations.
Catalyst to Watch
Watch for large OEM contract wins or major aerospace program updates, as these can validate or undermine the 26.7% EPS growth forecast.