Stock Price & Analysis

Buy PH stock as it has strong fundamentals with an 87% rating from Validea's P/E/Growth Investor model and positive analyst sentiment, despite short-term technical indicators showing mixed signals.

The price prediction for PH stock in 2025 is expected to reach $658 based on Fibonacci resistance levels and analyst consensus. The stock is supported at $569, indicating a potential upside of $89 from current levels.

The S1 support level for PH Stock is $592.09 ,The R1 resistant level for PH Stock is $650.08.

As of the end of day on 2025-04-02, the price of PH Stock was $599.29.

The target price for PH Stock according to analyst rating is 753.30, with the highest price target at 842.00 and the lowest at 575.00. Analysts have a Strong Buy rating on PH Stock overall.

The market cap of PH is $78.5B.

Analysis and Insights

Parker-Hannifin Corp (PH) appears to be overvalued based on several key metrics:

1. High Valuation Metrics:

   • PH's P/E ratio of 26.12 is significantly higher than its peers, indicating a premium valuation.
   • The EV/EBITDA of 17.13 and P/S ratio of 3.65 also suggest the stock is trading at a premium relative to its earnings and sales.

2. Inconsistent Financial Performance:

   • While net income has improved, revenue growth has been uneven, with a decline in the most recent quarter.
   • The gross margin of 35.43% and net margin of 25.90% are stable but not exceptional compared to industry peers.

3. Analyst Sentiment:

   • Analysts have mixed views, with some lowering price targets due to concerns over sales and margins. However, the majority maintain a "Buy" rating, with an average price target of $750, suggesting 18% upside potential.

4. Technical Trends:

   • The stock is trading near its 52-week high, with recent price action showing volatility. The pre-market gain of 1.62% indicates short-term optimism, but longer-term trends remain uncertain.

Conclusion

While PH has strong fundamentals and improving profitability, its high valuation metrics and inconsistent revenue growth suggest the stock may be overvalued at current levels. Investors should exercise caution and consider waiting for a pullback or clearer signs of sustained growth before entering.

Parker-Hannifin Corporation is a manufacturer of motion and control technologies and systems, providing precision engineered solutions for a range of mobile, industrial and aerospace markets. The Company’s segments include Diversified Industrial and Aerospace Systems. The Diversified Industrial segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, transportation, agricultural, construction, and military vehicles and equipment. This segment offers products, such as aerospace filters and systems and compressed air and gas treatment solutions, among others. The Aerospace Systems segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on domestic commercial, military and general aviation aircraft. This segment serves original equipment and maintenance, repair and overhaul customers around the world.

The price prediction for PH stock by 2030 is approximately $850 per share. This forecast is based on the company's strong financial performance, including a 34.9% gain over the past year, robust sales growth, and a "Strong Buy" consensus from analysts with a mean price target of $767.32. The company's alignment with growth strategies and positive market outlook support this projection.

PH has a total of 62730 employees.