) reached a new 52-week high of $100.58 on Monday, May 20, 2013.
The new high was primarily driven by the company's ability to
consistently raise dividends and supported by its strong balance
sheet. In addition, the company reported improved results for the
third quarter of fiscal 2013.
The closing price of this fluid power systems and
electromechanical controls manufacturer on May 20 was $100.58,
representing a robust one-year return of about 21.53% and a
decent year-to-date return of about 14.7%. Average volume of
shares traded over the last three months was approximately
Parker has been delivering positive earnings surprises more
often than not, although the last four quarters have averaged out
at 0.06%. This Zacks Rank #3 (Hold) company has a market cap of
$15.01 billion and a long-term expected earnings growth rate of
Parker has a strong balance sheet and generates strong cash
flow. Over the past decade or so, Parker Hannifin has doubled its
operating cash flow from just $0.5 billion in 2001 to $1.5
billion in 2012. In addition, Parker has returned value to
shareholders in the form of share repurchases and dividends.
While dividend increases have been fairly consistent in the
last few years, the company increased the dividend by a couple of
cents (or roughly 5%) in each of the last two quarters.
In addition, Parker follows a "Win Strategy" that primarily
aims to measure customer service excellence through efficient
business and cash management strategies.
Improved 3Q13 Earnings
reported third-quarter 2013 earnings per share of $1.68, a penny
above the Zacks Consensus Estimate.
Total revenue in the third quarter however declined 2.5% year
over year to $3.30 billion, down from $3.39 billion in the
prior-year quarter. Weak international markets and not very good
returns from the American market continued to affect revenue in
Although the quarterly earnings as well as revenue were not
very encouraging for Parker, the company expressed confidence
about a better fiscal 2013 given the improvement in its order
Other Stocks to Consider
Other stocks in the machinery industry that are currently
performing well and have a good visibility include
) with a Zacks Rank #1 (Strong Buy) and
Broadwind Energy, Inc
Altra Holdings Inc
), both with a Zacks Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
BROADWIND ENRGY (BWEN): Free Stock Analysis
GRACO INC (GGG): Free Stock Analysis Report
PARKER HANNIFIN (PH): Free Stock Analysis
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