#3 - Parker-Hannifan (NYSE:PH)
Industries that support the defense industry typically do well in any market environment. One boring way to gain exposure to this sector is through a picks-and-shovel stock like Parker-Hannifan Corp. (NYSE: PH).
The Cleveland, Ohio-based company sells industrial products to OEMs and distributors serving the replacement parts markets. It serves the defense industry by supplying parts for military machinery. Its Aerospace Systems also serves military customers. The products are boring; the sector is considered part of the old economy. But when the economy slows down, the ability to generate reliable revenue and earnings stands out from the crowd.
Like many companies on this list, Parker-Hannifan is projected to show strong earnings growth. Specifically, analysts are expecting high single-digit earnings growth. That would support the Moderate Buy rating the stock receives from the analysts surveyed by MarketBeat.
And even if the company’s earnings fall a little short, the company has a solid dividend. The yield isn’t particularly impressive at under 1.5%. But the stock does reward investors with an annual dividend payout of $5.32 per share.
About Parker-Hannifin
Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates through two segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial segment offers sealing, shielding, thermal products and systems, adhesives, coatings, and noise vibration and harshness solutions; filters, systems, and diagnostics solutions to ensure purity and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors used in fluid and gas handling; and hydraulic, pneumatic, and electromechanical components and systems for builders and users of mobile and industrial machinery and equipment.
Read More - Current Price
- $706.87
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $691.40 (2.2% Downside)
