10 Best Industrial Stocks to Invest in Now

2. Parker-Hannifin Corporation (NYSE:PH)

Number of Hedge Fund Holders: 62

Parker-Hannifin Corporation (NYSE:PH) is a specialty industrial machinery company that manufactures and sells motion and control technologies and systems for mobile, industrial, and aerospace markets. The industrial stock has consistently outperformed the overall market, going by a 34% gain in 2024. Likewise, the stock is already up by about 9%.

The stellar performance stems from Parker-Hannifin Corporation’s (NYSE:PH) ability to navigate industrial downturns. It has also experienced steady growth due to acquisitions and a stronger emphasis on long-lasting products that capitalize on secular trends like electrification and digitization. Parker Hannifin’s dominance of motion and control technologies supports its solid market position. The company has a competitive advantage due to its substantial presence in the aerospace industry, particularly given the continued strength of the commercial aerospace cycle.

Over the past ten years, Parker-Hannifin Corporation (NYSE:PH) has effectively diversified its portfolio, lowering its susceptibility to changes in specific markets. In particular, the aerospace sector is expected to continue growing. Even though double-digit growth rates might not last forever, the performance of this segment is well-supported by the robust commercial cycle. Analysts predict that between 2024 and 2027, the organic growth CAGR will be 6.7%, while the operating margin will increase by 268 basis points during that time.