NYSEIndustrialsIndustrial - MachinerySnapshot 2026-08-31
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Create your account →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.
This investment represents a durable compounder with a focus on steady earnings growth and margin improvement. The current thesis state is intact, supported by strong recent financial performance and management's commitment to growth targets.
The market appears to have priced in a stretched valuation, reflecting a premium compared to peers. There is a low expectations gap, indicating that investors are generally optimistic about the company's future performance.
Management is on track to achieve mid-teens adjusted EPS growth, with recent results showing strong sales and margin improvements. However, there is a moderate risk as earnings surprises are trending down, which could impact future performance.
The thesis hinges on the performance of sector bellwethers like GEV, TT, and EMR. If these companies continue to perform well, it could support PH's growth. Conversely, any negative guidance from these peers could pose a risk to PH's momentum.
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. Additionally, higher guidance reinforces expectations for continued strong performance. There are no new threats impacting the thesis at this time.
as of 2026-08-31
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's fundamentals remain solid, but the stretched valuation and sector dynamics warrant careful monitoring. Not investment advice.
