With the entire market selling off in recent weeks, investors have a chance to buy shares of great companies, no matter what sector they’re in. For tech companies, it can mean getting a hefty discount to recent higher.
For other companies, any dips may be short-lived. Investors who focus on industry leaders may have to pay up no matter what happens in the market. But in many cases, that can be worth it.
Amid last week’s market volatility, only a handful of companies made new all-time highs. One such company is Parker-Hannifin (PH). The maker of motion and control components for vehicles has gone 30 years with positive cash flow and profitability.
While shares are up 37% over the past year and making new all-time highs, they’re not overpriced on an earnings basis, trading at 21 times forward estimates.
And Parker-Hannifin sports a 14% profit margin, in a space where most industrial component producers are lucky to make 10%.
Action to take: Investors may like shares at current prices, and should keep an eye for any market dip that could lead to a bargain. At current prices, shares pay a 1.1% dividend, with a history of growth over time.
For traders, the trend higher is likely to continue. The November $500 calls, last trading for about $23.50, could see mid-double-digit returns from the further uptrend in shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.