Stock Analysis | Parker-Hannifin Outlook - A Mixed Picture Amid Rising Prices and Weak Technicals

Market Snapshot

Headline Takeaway: Parker-Hannifin (PH) is showing a 1.52% price rise in the short term, supported by a generally positive analyst outlook, but is facing bearish technical signals and weak chart momentum.

News Highlights

Recent news highlights include:

• Farm machinery industry eyes modest recovery - Farm equipment sales in Brazil have stabilized, with revenue rising 12% from November 2024 to February 2025. This could positively impact Parker-Hannifin, which supplies components for agricultural machinery.
• US changes to vaccine policy - The US government has revised its vaccine recommendations for respiratory diseases, which could indirectly affect Parker-Hannifin's healthcare-related product lines. However, the impact is uncertain and likely limited.
• Asia-Pacific ETF assets hit record - ETF assets in the Asia-Pacific region (excluding Japan) reached $1.25 trillion in April, indicating a broader appetite for equities. This could support PH if the market continues to favor industrial stocks.

Analyst Views & Fundamentals

Ratings and Consistency

The average analyst rating for PH is 4.00 (simple mean), and the performance-weighted rating is 3.95. The ratings are consistent, with six analysts assigning "Buy" or similar ratings out of six total. This aligns with the current price trend, which is positive (1.52% rise).

Fundamental Factor Values

• Revenue-MV: -0.3060 (model score: 3)
• Net income-Revenue: 75.53% (model score: 2)
• Basic earnings per share (YoY growth rate): 23.31% (model score: 2)
• Net cash flow from operating activities per share (YoY): 23.83% (model score: 1)
• Net profit attributable to parent company (YoY): 23.58% (model score: 3)
• Income tax / Total profit: 19.30% (model score: 2)
• Asset-MV: -0.5994 (model score: 2)
• Cash-MV: -0.3894 (model score: 1)

These figures indicate mixed fundamental momentum, with strong revenue and earnings growth, but weaker cash and asset ratios. The overall internal diagnostic score for fundamentals is 5.53 (on a 0-10 scale), suggesting a cautiously optimistic outlook.

Money-Flow Trends

Big-money flows are currently negative: large and extra-large investors have been net sellers, with a 46.76% block-inflow ratio (negative trend). However, small retail investors are showing a positive trend (49.29% inflow ratio). The overall inflow ratio is 47.07%, suggesting some retail support but no strong institutional backing. This is a mixed signal for short-term sentiment.

Key Technical Signals

Internal Diagnostic Scores

• MACD Golden Cross: 7.53 (bullish bias)
• WR Overbought: 2.52 (neutral rise)
• WR Oversold: 2.78 (neutral rise)
• Bearish Engulfing: 1.23 (bearish bias)
• Hanging Man: 1.86 (bearish bias)
• Earnings Release Date: 4.87 (neutral rise)

Recent Chart Patterns

• 2025-08-13: WR Overbought and MACD Golden Cross signals were observed — a mixed but slightly bullish trend.
• 2025-08-12: WR Overbought signal only, suggesting caution.
• 2025-08-05 and 2025-08-07: Bearish Engulfing and Hanging Man patterns appeared, both of which are bearish internal diagnostic signals.

Momentum Summary

The technical score is 3.46 (on a 0-10 scale), with 4 bearish indicators and 1 bullish over the past five days. The overall trend is weak, and the model suggests avoiding the stock for now, as bearish signals are dominant and volatility is high.

Conclusion

While the fundamentals and analyst ratings are cautiously positive, the technical picture is weak, with bearish chart patterns outweighing the few bullish signals. Investors should consider waiting for a pull-back or clearer momentum before committing to PH. Keep an eye on the upcoming earnings report and major institutional movements, as these could provide further direction.