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.

Trade-Ideas LLC identified

Parker Hannifin

(

PH

) as a pre-market laggard 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 $151.3 million.
  • PH traded 10,255 shares today in the pre-market hours as of 9:24 AM.
  • PH is down 5.3% today from Friday's close.

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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 2%. PH has a PE ratio of 17.0. Currently there are 6 analysts that rate Parker Hannifin a buy, 1 analyst rates 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 $17.6 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.45 and a short float of 7.3% with 7.94 days to cover. Shares are down 5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Parker Hannifin as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.6%. Since the same quarter one year prior, revenues slightly increased by 0.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PH has a quick ratio of 1.69, which demonstrates the ability of the company to cover short-term liquidity needs.
  • PARKER-HANNIFIN CORP has improved earnings per share by 8.4% 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 ($8.00 versus $6.85).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Machinery industry average. The net income increased by 5.5% when compared to the same quarter one year prior, going from $253.29 million to $267.25 million.
  • Net operating cash flow has slightly increased to $277.62 million or 7.84% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -20.85%.

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