What Makes Parker-Hannifin Corporation (PH) a Good Investment Option?
ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Value Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The third quarter experienced significant gains for U.S. equities, which recovered from a fear of slowing economic growth that had driven several asset markets into correction territory. A broad rebound was then induced by a 50 basis point interest rate drop by the Federal Reserve. The Russell 1000 Value Index generated a gain of 9.43% for the quarter. Against this backdrop, the ClearBridge Large Cap Value Strategy underperformed the benchmark Russell 1000 Value Index during the quarter. In addition, you can check the fund's top 5 holdings to determine its best picks for 2024.
ClearBridge Large Cap Value Strategy highlighted stocks like Parker-Hannifin Corporation (NYSE:PH), in the second quarter 2024 investor letter. 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 6.80%, and its shares gained 60.72% of their value over the last 52 weeks. On October 9, 2024, Parker-Hannifin Corporation (NYSE:PH) stock closed at $631.52 per share with a market capitalization of $81.258 billion.
ClearBridge Large Cap Value Strategy stated the following regarding Parker-Hannifin Corporation (NYSE:PH) in its Q3 2024 investor letter:
"In industrials, we trimmed Illinois Tool Works and initiated a position in a similar high-quality diversified industrial franchise, Parker-Hannifin Corporation (NYSE:PH), a motion and control technologies company with growing aerospace and defense exposure currently representing about 40% of the business. While both companies are high-quality diversified industrial franchises, the latter has been able to grow faster by pivoting toward a longer-cycle A&D business, yet its stock continues to trade at a discount relative to its peers."
A robotic arm in a factory demonstrating the application of motion control technologies.
Parker-Hannifin Corporation (NYSE:PH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Parker-Hannifin Corporation (NYSE:PH) at the end of the second quarter which was 63 in the previous quarter. In the June quarter, Parker-Hannifin Corporation (NYSE:PH) experienced total sales growth of nearly 2% compared to the previous year, reaching nearly $5.2 billion in sales. While we acknowledge the potential of Parker-Hannifin Corporation (NYSE:PH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Parker-Hannifin Corporation (NYSE:PH) and shared Diamond Hill Mid Cap Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2024 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.