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Parker-Hannifin Corporation (PH)

Parker-Hannifin stock forecast: buy or sell

Close on Sep 25th, 2020
$199.98 0.02%
3 months performance
0.15%
Published: September 27th, 2020 - 17:36

Parker-Hannifin stock outlook

  • Parker-Hannifin closed on Friday at $199.98 after rising a 2.07%.
  • Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide.

Important:
The thoughts expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not know the individual positions of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for educative motives only

Parker-Hannifin stock charts

Should I buy Parker-Hannifin stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is PH stock a buy?

Currently, Parker-Hannifin stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean PH will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Parker-Hannifin stock?

"To sell or not to sell", if you are holding Parker-Hannifin stock?. Trading strategies let us to avoid impulsive decisions based on our personal feelings or the noise that surrounds the market. When selling, as well as buying, detailed strategies are very easy to follow but are only applicable for selling shares in your porfolio, not for shorting PH stock

As a golden rule, you should never mantain a trading operation that produces higher than expected losses at the time of purchase. The timing to sell shares must always be ruled by the stop-loss (automatic or manual)

Is it time to sell Parker-Hannifin stock?

In the current situation of Parker-Hannifin there is not any eligible sell setup, so Parker-Hannifin stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell Parker-Hannifin stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating published in the last month for Parker-Hannifin

Technical analysis

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

PH SMAs chart

Supports and resistances

Investors use supports and resistances to spot price points in the stock price action that tend to act as glass ceiling, preventing the price of an asset to move in certain direction. Supports are levels where the price tends to find support as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue descending until meeting another support level. On the other side, a resistance level is where the price tends to find opposition as it moves up. In the same way, the price is more likely to "rebound" at this level, and if it finally breaks this level, it will rally more easily until it finds the next resistance

The current resistance levels are:

  • R1: $202.12 (1.07% above)
  • R2: $202.26 (1.14% above)
  • R3: $208.52 (4.27% above)
  • The current supports are:

  • S1: $199.46 (-0.26% below)
  • S2: $192.25 (-3.87% below)
  • S3: $189.80 (-5.09% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-known practice that was created by John Bollinger. The Bollinger Bands are bands that fluctuate around a centralmoving averagediffering in distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on September 16, the price has been corrected downwards by 8.09%. Since the price broke down the lower band on Thursday, the price rebounded by 4.02%. The price is trading very close to the lower Bollinger band, indicating some level of oversold in recent sessions. This is not a buy signal, as price can trade in these levels for many days and weeks

    PH RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to plot the current and historical weakness or strength of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI fluctuates from 0% to 100%. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by stock traders

    The RSI dropped below the overbought level of 70 in mid-August after just crossing to the overbough zone for just one day (weak signal). The RSI value on Friday was 45.97. Parker-Hannifin stock dropped a 3.79% since that level was lost

    PH RSI chart

    Earnings and financials

    In early August, Parker-Hannifin hosted the quarterly investors call and released the second-quarter report. Parker-Hannifin reported second-quarter earnings of $2.55 per share on revenue of $3.2 billion. The market estimate was $1.51 per share on revenue of $2.9 billion.

    Compared to the same quarter last year, EPS was $3.31, so posted EPS is a decrease of -22.96%. Looking at revenue, figures tanked a -14.15% compared to $3.7B same quarter last year.

    Parker-Hannifin will host the earnings call on late next October. Estimated per-share earnings of %s for this quarter is $2.29. If you own or you are planning to buy Parker-Hannifin shares, you must be careful as earnings reporting day usually has a very high volatility, and price can gap up or down with exceptionally low liquidity and not honouring your buy/stop-loss orders. Check company's website to confirm time and details about the earnings call and the earnings report.

    PH revenues and profits chart