Seeking Alpha: Worries About Europe And Energy Seem To Weigh On Parker-Hannifin

A good general rule of thumb says that investors should look to buy high-quality companies when investor enthusiasm has waned, and it does seem as though sentiment has cooled on Parker-Hannifin (NYSE:PH) in recent months. It's not exactly a wash-out yet, as the shares are still up a bit over the past year and have outperformed Eaton (NYSE:ETN) and Rockwell (NYSE:ROK) while lagging Honeywell (NYSE:HON) and 3M (NYSE:MMM).

Parker-Hannifin's exposure to an improving aerospace sector is a good thing, as is the company's leverage to trucks and cars and a solid track record of operating performance. With sizable exposure to Europe, though, forex has become a concern as has Parker's exposure to PMI-sensitive diversified industrial markets. I do think these shares are now at a level where long-term investors ought to be interested, but Parker-Hannifin's sensitivity to industrial growth is a risk if North America slows and/or Europe slips back toward contraction.


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Worries About Europe And Energy Seem To Weigh On Parker-Hannifin