Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Parker Hannifin as such a stock due to the following factors:
- PH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $152.3 million.
- PH has traded 200 shares today.
- PH is trading at a new lifetime high.
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More details on PH:
Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. It operates through two segments, Diversified Industrial and Aerospace Systems. The stock currently has a dividend yield of 1.9%. PH has a PE ratio of 18.4. Currently there are 7 analysts that rate Parker Hannifin a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Parker Hannifin has been 1.3 million shares per day over the past 30 days. Parker Hannifin has a market cap of $19.4 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.38 and a short float of 1.7% with 1.98 days to cover. Shares are up 0.5% year-to-date as of the close of trading on Wednesday.
rates Parker Hannifin as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- PARKER-HANNIFIN CORP has improved earnings per share by 14.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, PARKER-HANNIFIN CORP increased its bottom line by earning $6.85 versus $6.22 in the prior year. This year, the market expects an improvement in earnings ($7.97 versus $6.85).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Machinery industry average. The net income increased by 14.6% when compared to the same quarter one year prior, going from $244.32 million to $280.09 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 1.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market on the basis of return on equity, PARKER-HANNIFIN CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Parker Hannifin Ratings Report.