Parker Hannifin

Methodology

Parker Hannifin's motion and control technologies serve diverse end markets creating earnings sensitivity to industrial cycles, though aftermarket and service revenue add stability. The calculation works best using normalized mid-cycle earnings rather than peak or trough conditions. Consistent acquisition execution and operational improvements provide growth beyond organic market expansion.

Methodology

Parker typically trades at moderate PEG ratios reflecting diversified industrial exposure, acquisition-driven growth, and operating margin expansion potential. The metric should account for cycle positioning and acquisition contributions. Compare to diversified industrial peers like Emerson while considering Parker's motion control leadership and Win Strategy execution.

Methodology

Parker offers a meaningful dividend with decades of consecutive increases, making it a dividend aristocrat and making PEGY important for total return evaluation. The dividend provides reliable income alongside acquisition-enhanced growth. For this quality industrial, dividend consistency matters as much as earnings growth in attracting long-term investors.