Here's Why You Should Consider Investing in Parker-Hannifin Now

Parker-Hannifin Corporation PH is well-positioned to benefit from strength in the Aerospace segment and accretive acquisitions. The company’s shareholder-friendly moves also augur well.

Shares of PH have gained 35% compared with the industry’s 8.1% growth in the year-to-date period.

Let’s delve into the factors that make this Zacks Rank #2 (Buy) company a smart investment choice at the moment.

Business Strength: PH’s Aerospace Systems segment is gaining from steady demand across end markets and higher orders. The segment is benefiting from strong momentum in commercial and military end markets across both OEM and aftermarket channels. In the quarters ahead, the segment is likely to aid 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.

Expansion Initiatives: The company solidified its product portfolio and leveraged business opportunities by adding assets. In November 2025, PH inked a deal to acquire Filtration Group Corp. The acquisition is expected to enhance Parker-Hannifin’s industrial filtration capabilities and expand its presence in key growth markets. The deal is expected to close in six-12 months, subject to customary closing conditions. In September 2025, Parker-Hannifin completed the acquisition of Curtis Instruments from Rehlko. The inclusion of Curtis’ advanced control solutions enables the company to enhance its industrial electrification portfolio and expand its reach in in-plant material handling and off-highway markets. This acquisition will also strengthen Parker-Hannifin’s electric motor and motion control capabilities, allowing it to provide more comprehensive electric and hybrid solutions to its customers.

Win Strategy: In the quarters ahead, PH is likely to gain from its Win Strategy (version 3.0), which focuses on innovation, strategic positioning, distribution growth and incentive plan changes to drive organic growth. The Win strategy is a business system that defines goals and initiatives, enabling Parker-Hannifin's long-term and sustainable growth. It supports the company’s margin performance. In the first quarter of fiscal 2026 (ended September 2025), the operating margin increased 160 basis points year over year to 24.2%.

Rewards to Shareholders: Parker-Hannifin is committed to returning value to shareholders through share repurchases and dividends. In the first three months of fiscal 2026, it paid out cash dividends of $228 million, up 8.6% year over year. In the same period, the company bought back shares worth $475 million. In April 2025, PH hiked its dividend by 10% to $1.80 per share (annually: $7.20).

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This article originally published on Zacks Investment Research (zacks.com).

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