Is this the Best Time to Add Parker-Hannifin (PH)?

ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equities continued their upward journey in the third quarter with the S&P 500 Index surging 8.1% and tech-heavy Nasdaq Composite rising 11.2% to record highs. Investor optimism was driven by favorable tariff results, the One Big Beautiful Bill in July, expected interest rate cuts, and strong corporate earnings, particularly in technology and the Magnificent Seven. The benchmark Russell 1000 Growth Index rose 10.5% for the quarter. The strategy delivered solid absolute performance in the quarter but underperformed the benchmark. Underexposure to perceived AI winners and holding several names deemed by investors to be AI losers led to the underperformance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Large Cap Growth Strategy highlighted stocks such as Parker-Hannifin Corporation (NYSE:PH). Parker-Hannifin Corporation (NYSE:PH) manufactures motion and control technologies and systems for mobile, industrial, and aerospace markets. The one-month return of Parker-Hannifin Corporation (NYSE:PH) was 1.24%, and its shares gained 22.21% of their value over the last 52 weeks. On October 3, 2025, Parker-Hannifin Corporation (NYSE:PH) stock closed at $763.03 per share, with a market capitalization of $97.386 billion.

ClearBridge Large Cap Growth Strategy stated the following regarding Parker-Hannifin Corporation (NYSE:PH) in its third quarter 2025 investor letter:

"Another area where we see promise is in early cyclical companies that could be beneficiaries of an improving economic environment. We added Parker-Hannifin Corporation (NYSE:PH), a diversified manufacturer in industrials. One of Parker-Hannifin’s two main segments is aerospace, a resilient growth area in an otherwise challenged economy. We have been optimistic about the durability of growth in aerospace as expressed through portfolio holdings RTX and Airbus. Parker-Hannifin is also exposed to short-cycle industrial businesses where orders are rebounding. While it is still too early to definitively call a positive inflection in the industrial economy, we see green shoots here and want portfolio exposure to improving trends."

Parker-Hannifin Corporation (NYSE:PH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 51 hedge fund portfolios held Parker-Hannifin Corporation (NYSE:PH) at the end of the second quarter, the same as in the previous quarter.  While we acknowledge the potential of Parker-Hannifin Corporation (NYSE:PH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Parker-Hannifin Corporation (NYSE:PH) and shared the list of best manufacturing stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.