Parker Hannifin Corporation (PH): Today's Featured Industrial Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Parker Hannifin Corporation ( PH) pushed the Industrial industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day down 1.2%. By the end of trading, Parker Hannifin Corporation fell $1.76 (-1.9%) to $93.26 on average volume. Throughout the day, 1.3 million shares of Parker Hannifin Corporation exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $92.62-$94.58 after having opened the day at $94.58 as compared to the previous trading day's close of $95.02. Other companies within the Industrial industry that declined today were: JinkoSolar ( JKS), down 12.2%, Ultralife Batteries ( ULBI), down 8.9%, 3D Systems Corporation ( DDD), down 8.4%, and Cleantech Solutions International ( CLNT), down 7.8%.
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Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Parker Hannifin Corporation has a market cap of $14.54 billion and is part of the industrial goods sector. The company has a P/E ratio of 14.4, below the S&P 500 P/E ratio of 17.7. Shares are up 14.6% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Parker Hannifin Corporation a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates Parker Hannifin Corporation as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, China Valves Technology ( CVVT), up 6.7%, Zoltek Companies ( ZOLT), up 6%, CVD Equipment Corporation ( CVV), up 5.8%, and China BAK Battery ( CBAK), up 5.2%, were all gainers within the industrial industry with Gardner Denver ( GDI) being today's featured industrial industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial industry could consider SPDR Dow Jones Industrial Average ( DIA) while those bearish on the industrial industry could consider ProShares UltraShort Industrials ( SIJ).

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