Parker-Hannifin: A 38% Rally (Don’t Ask Me How)

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Right. Parker-Hannifin. (PH 1.20%). Up 38.2% in 2025, apparently. Honestly, I’m not sure how these things happen. It’s industrial stuff, mostly. Valves, motion control… sounds dreadfully boring, doesn’t it? But the market, bless its fickle heart, decided it liked it. I’m just here to tell you what it did, not why. Though, if I had to guess, it involved a lot of spreadsheets and someone getting very lucky.

They sell bits and pieces to pretty much everyone, from aerospace (big money, that) to… well, everything else. The aerospace side was the star, naturally. Took off, they say. A truly awful pun, but I’ll allow it. Margins expanded, earnings beat expectations… the usual song and dance. It’s almost… predictable. Almost.

And then came the shopping spree. A billion here for Curtis Instruments, a staggering $9.25 billion there for Filtration Group. It’s like they were trying to buy their way to happiness. Which, let’s be real, is a perfectly valid strategy. I mean, it worked for me once… never mind. They’re acquiring businesses like I acquire bad habits.

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Parker-Hannifin: Recovering From a Tariff-Fueled Panic (Honestly, It Was Messy)

Let’s rewind a bit. Early in the year, there was this whole “Liberation Day” tariff thing. Sounded terrifying. Everyone was bracing for impact. Then, Parker just… raised prices. And streamlined costs. It’s like they said, “Fine, world, you want expensive valves? You’ll get expensive valves.” And it worked. I mean, it’s infuriatingly simple, isn’t it? I wish I thought of that.

They’ve been on a roll with acquisitions for a while now, gobbling up companies left and right. The Meggitt deal (about $7.3 billion back in 2022) finally started paying off. Aerospace division up 13%, margins expanded by 300 basis points… it’s all very impressive. It almost makes up for the 3% decline in their general industrial stuff. Almost.

First quarter of 2025 was even better. Revenue up 3.7% (5% if you ignore the bits they sold off, which, let’s be honest, they probably should). Margins expanding, earnings per share up 16%… They even raised their full-year guidance. From 3.5% to 6.5% growth. And EPS from $28.90 to $30.00. It’s like watching a perfectly executed plan unfold. Which is unnerving, frankly. I prefer a little chaos.

The Curtis Instruments and Filtration Group acquisitions? Smart moves. Curtis makes stuff for electric vehicles (because everyone is obsessed with electric vehicles). Filtration Group expands their reach into food protection and healthcare. Suddenly, Parker-Hannifin is everywhere. It’s a little… unsettling, isn’t it? Like they’re plotting something.

Parker is a High-Performing Company, But Don’t Get Too Excited

Parker-Hannifin is good. Really good. They’ve got this “Win 3.0” strategy, whatever that is. Sounds like corporate jargon to me, but hey, if it works… In a difficult macroeconomic environment, they managed to deliver. Investors are thrilled. And I’m… cautiously optimistic. Mostly because I’m trying to figure out how to profit from it.

The shares are trading at 33 times earnings. That’s… steep. The high end of their valuation range for the past decade. So, yeah, it’s probably fairly valued, or even overvalued. But it’s a high-quality company. If there’s a pullback, it’s worth a look. Just don’t expect a miracle. And definitely don’t ask me for investment advice. I’m just a messenger, really. A cynical, slightly anxious messenger.

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2026-01-25 21:12