The Zacks Industrial Products Sector has been hot over the last month, penciling in a solid 9.7% return vs. the S&P 500’s 5.8% gain. Still, the sector is deep in the red year-to-date. Below is a table illustrating the performance of the sector over several timeframes.

Image Source: Zacks Investment Research

A big player in the sector, Applied Industrial Technologies (AIT Quick QuoteAIT - Free Report) , is on deck to reveal Q4 2022 earnings results on Thursday, August 11^th, before the market opens.

Applied Industrial Technologies distributes value-added industrial products, including engineered fluid power components, bearings, specialty flow control solutions, power transmission products, and miscellaneous industrial supplies.

As it stands, the company carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B. How are things shaping up heading into the print? Let’s take a closer look.

Share Performance & Valuation

Year-to-date, AIT shares reside nicely in the green, up nearly 5% and easily outperforming the general market’s 13% decline. In the sea of red that is 2022, seeing a stock in the green is always remarkable, signaling that the bulls have defended shares all year long.

Image Source: Zacks Investment Research

Even over the last month, shares have tacked on a remarkable 15%, easily crushing the S&P 500’s nearly 7% return in this timeframe as well.

Image Source: Zacks Investment Research

In addition to strong price action, AIT shares carry solid valuation levels, as displayed by its Style Score of a B for Value. The company’s 15.2X forward earnings multiple resides nicely below its five-year median of 17.1X and represents a 7% discount relative to its Zacks Sector.

Image Source: Zacks Investment Research

Quarterly Estimates

Analysts have been quiet for the quarter to be reported, with zero estimate revisions coming in over the last 60 days. Still, the Zacks Consensus EPS Estimate resides at $1.68, penciling in a solid 11% year-over-year uptick in earnings.

Image Source: Zacks Investment Research

In addition, AIT’s top-line is in excellent health as well – the company is forecasted to have generated $976 million in sales throughout the quarter, a 9% uptick compared to year-ago quarterly revenue of $895 million.

Quarterly Performance & Market Reactions

AIT has repeatedly reported bottom-line results above the Zacks Consensus EPS Estimate, registering eight EPS beats out of its last ten quarters. Just in its latest quarter, the company reported a breakeven surprise.

Quarterly sales numbers have been spectacular as well – AIT has chained together seven consecutive revenue beats. Below is a chart illustrating the company’s revenue on a quarterly basis.

Image Source: Zacks Investment Research

It’s worth noting that the market has reacted strongly to the company’s two latest earnings reports, with shares moving up following the print both times by at least 3.3%.

Putting Everything Together

AIT shares have not only been hot over the last month but throughout the entirety of 2022 as well. In addition, shares trade at solid valuation multiples.

Analysts have been quiet as of late, but quarterly estimates project rock-solid growth within the company’s top and bottom-lines.

Furthermore, AIT has consistently reported quarterly results above estimates, undoubtedly a major positive.

Heading into the print, Applied Industrial Technologies (AIT Quick QuoteAIT - Free Report) carries a Zacks Rank #3 (Hold).