Parker-Hannifin (PH) Benefited from Solid Results in Its Aerospace Segment

Madison Investments, an investment advisor, released its fourth-quarter 2025 investor letter for the “Madison Large Cap Fund”. A copy of the letter can be downloaded here. In the fourth quarter, the S&P 500 returned 2.65%, resulting in a full-year return of 17.9% for 2025. Over the last three years, the Index has achieved annual growth of over 21%. Following the recent trends, market leadership was defined by High Beta and Momentum factors, with narrow participation. However, in the fourth quarter, the market saw slight improvements in previously lagging sectors like Healthcare, Financials, and Consumer Discretionary. Still, mega-cap technology companies remained the primary drivers of the S&P 500's overall return, indicating high stock concentration. Against this backdrop, the Madison Large Cap Fund (Class I) appreciated 3.43% compared to the S&P 500 Index’s 2.65% return. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks like Parker-Hannifin Corporation (NYSE:PH). Parker-Hannifin Corporation (NYSE:PH) is a leading manufacturer of motion and control technologies for a diverse portfolio of companies. On February 24, 2026, Parker-Hannifin Corporation (NYSE:PH) stock closed at $1,023.02 per share. One-month return of Parker-Hannifin Corporation (NYSE:PH) was 11.65%, and its shares gained 54.86% over the past 52 weeks. Parker-Hannifin Corporation (NYSE:PH) has a market capitalization of $129.122 billion.

Madison Large Cap Fund stated the following regarding Parker-Hannifin Corporation (NYSE:PH) in its fourth quarter 2025 investor letter:

"The top five contributors for the quarter were Alphabet, Parker-Hannifin Corporation (NYSE:PH), Keysight Technologies, Danaher, and PACCAR. Parker-Hannifin, a diversified industrial, reported another strong quarter of margin improvement and robust results in its aerospace segment with low-teens organic growth."

Parker-Hannifin Corporation (NYSE:PH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 64 hedge fund portfolios held Parker-Hannifin Corporation (NYSE:PH) at the end of the fourth quarter, up from 57 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 a list of Goldman Sachs dividend stocks. In addition, please check out our hedge fund investor letters Q4 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.