Trade-Ideas LLC identified Parker Hannifin ( PH) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Parker Hannifin as such a stock due to the following factors:

  • PH has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 1.06 mentions/day.
  • PH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $158.2 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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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. The company operates in two segments, Diversified Industrial and Aerospace Systems. The stock currently has a dividend yield of 2.9%. PH has a PE ratio of 13. Currently there are 2 analysts that rate Parker Hannifin a buy, no analysts rate it a sell, and 11 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 $12.0 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.50 and a short float of 5.2% with 4.14 days to cover. Shares are down 7.4% 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 hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the 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.
  • The gross profit margin for PARKER-HANNIFIN CORP is currently lower than what is desirable, coming in at 26.46%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.79% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $4.97 million or 98.09% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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