Parker-Hannifin Stock Exhibits Strong Prospects Despite Headwinds

Parker-Hannifin Corporation PH is witnessing strong momentum in the Aerospace Systems segment. The segment is benefiting from strong momentum in commercial and military end markets across both OEM and aftermarket channels. The segment’s revenues jumped approximately 13% year over year in fiscal 2025 (ended June 2025). In the quarters ahead, it is poised to gain from strong demand for its products and aftermarket support services in the general aviation market, driven by growth in air transport activities. Strength in its defense end market, owing to stable U.S. and international defense spending volumes, is also likely to be beneficial.PH solidified its product portfolio and leveraged business opportunities through asset additions. In June 2025, the company inked a deal to acquire Curtis Instruments, Inc. The acquisition is expected to boost its electrification portfolio and strengthen its capabilities in electric vehicle motors, hydraulics and electrification technologies. Subject to customary closing conditions, the acquisition is expected to close by the end of 2025. In September 2022, Parker-Hannifin acquired Meggitt plc, a global leader in motion and control technologies. The acquisition expanded Parker-Hannifin’s presence in the United Kingdom, positioning it well to provide a broader suite of solutions for aircraft and aero-engine components and systems.The company is committed to rewarding its shareholders handsomely through dividend payments and share buybacks. In fiscal 2025, Parker-Hannifin rewarded its shareholders with dividends of $861 million, up 10.1%. The company repurchased shares worth $851 million in the same period. In April 2025, PH hiked its dividend by 10% to $1.80 per share (annually: $7.20).Price Performance of PHIn the year-to-date period, this Zacks Rank #3 (Hold) company’s shares have gained 19.4% compared with the industry’s 7.7% growth.Image Source: Zacks Investment ResearchHowever, weakness across the Diversified Industrial segment is concerning for the company. Challenging conditions in the off-highway end market, due to softness in the agricultural sector, have been affecting both the North America and international businesses of the segment. Weakness in the transportation end market, arising from lower demand for automotive cars, is ailing the North America and international businesses as well. Challenges in the energy end market, owing to lower oil & gas prices, affected the segment’s performance in fiscal 2025. The Diversified Industrial segment’s sales decreased 5.5% in fiscal 2025 on a year-over-year basis.Parker-Hannifin operates across diverse regions, which exposes it to certain political, environmental and geopolitical issues. Moreover, it remains vulnerable to currency translation risks, which may affect its performance in the quarters ahead. A stronger U.S. dollar may depress the company's overseas business results in the near term. In fiscal 2025, foreign currency translation lowered the Diversified Industrial segment’s sales by 0.5%.Stocks to ConsiderSome better-ranked companies are discussed below.Flowserve Corporation FLS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.FLS delivered a trailing four-quarter average earnings surprise of 5.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2025 earnings has increased 5.6%.Crane Company CR presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 7.5%.In the past 60 days, the consensus estimate for CR’s 2025 earnings has increased 4%.Dover Corporation DOV presently carries a Zacks Rank of 2. DOV delivered a trailing four-quarter average earnings surprise of 4%.In the past 60 days, the consensus estimate for DOV’s 2025 earnings has inched up 1.3%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Crane Company (CR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks