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Here's Why Applied Industrial (AIT) is an Attractive Pick Now
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Applied Industrial Technologies, Inc. (AIT - Free Report) is gaining from strength in its businesses, growth initiatives, acquired assets and a sound capital-deployment strategy.
Let’s delve into the factors that make this Zacks Rank #2 (Buy) company a smart investment choice at the moment.
Business Strength: Sales process initiatives and favorable pricing actions are aiding AIT’s Service Center Based Distribution segment. The Engineered Solutions segment is driven by robust technical and engineering capabilities, and solid backlog levels. Focus on pricing and cross-selling actions, and growth initiatives augur well for the company.
Expansion Initiatives: The company solidified its product portfolio and leveraged business opportunities by adding assets. The Advanced Motion Systems Inc. (April 2023) buyout expanded AIT’s footprint in the upper Northeast region of the United States while also helping to bolster relationships with leading suppliers. The acquisition of Automation, Inc. (November 2022) expanded Applied Industrial’s footprint across key verticals and geographies while supplementing its value-added services and cross-selling efforts. In third-quarter fiscal 2023 (ended March 2023), buyouts had a positive impact of 0.7% on the company's sales.
Rewards to Shareholders: Applied Industrial is committed to rewarding its shareholders handsomely through dividend payments and share buybacks. In the first nine months of fiscal 2023, it paid out dividends worth $39.8 million, up 3.2% on a year-over-year basis. The company hiked its quarterly dividend rate by 2.9% in January 2023.
Northward Estimate Revision: The Zacks Consensus Estimate for AIT’s fiscal 2023 (ended June 2023) earnings has been revised upward by a penny in the past 60 days.
Price Performance: Shares of Applied Industrial have gained 59.5% in the past year, outperforming the industry’s 33% increase.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies from the Industrial Products sector are discussed below:
GEF delivered a trailing four-quarter earnings surprise of 7.7%, on average. GEF’s earnings estimates have increased 13.4% for fiscal 2023 in the past 60 days. Its shares have risen 7% in the past year.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank of 2. AOS’ earnings surprise in the last four quarters was 8%, on average.
In the past 60 days, estimates for A. O. Smith’s earnings estimates have remained steady for 2023. The stock has gained 29.1% in the past year.
Deere & Company (DE - Free Report) presently carries a Zacks Rank of 2. DE’s earnings surprise in the last four quarters was 7.2%, on average.
In the past 60 days, estimates for Deere & Company’s fiscal 2023 earnings have increased 4%. The stock has rallied 37.6% in the past year.
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Here's Why Applied Industrial (AIT) is an Attractive Pick Now
Applied Industrial Technologies, Inc. (AIT - Free Report) is gaining from strength in its businesses, growth initiatives, acquired assets and a sound capital-deployment strategy.
Let’s delve into the factors that make this Zacks Rank #2 (Buy) company a smart investment choice at the moment.
Business Strength: Sales process initiatives and favorable pricing actions are aiding AIT’s Service Center Based Distribution segment. The Engineered Solutions segment is driven by robust technical and engineering capabilities, and solid backlog levels. Focus on pricing and cross-selling actions, and growth initiatives augur well for the company.
Expansion Initiatives: The company solidified its product portfolio and leveraged business opportunities by adding assets. The Advanced Motion Systems Inc. (April 2023) buyout expanded AIT’s footprint in the upper Northeast region of the United States while also helping to bolster relationships with leading suppliers. The acquisition of Automation, Inc. (November 2022) expanded Applied Industrial’s footprint across key verticals and geographies while supplementing its value-added services and cross-selling efforts. In third-quarter fiscal 2023 (ended March 2023), buyouts had a positive impact of 0.7% on the company's sales.
Rewards to Shareholders: Applied Industrial is committed to rewarding its shareholders handsomely through dividend payments and share buybacks. In the first nine months of fiscal 2023, it paid out dividends worth $39.8 million, up 3.2% on a year-over-year basis. The company hiked its quarterly dividend rate by 2.9% in January 2023.
Northward Estimate Revision: The Zacks Consensus Estimate for AIT’s fiscal 2023 (ended June 2023) earnings has been revised upward by a penny in the past 60 days.
Price Performance: Shares of Applied Industrial have gained 59.5% in the past year, outperforming the industry’s 33% increase.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies from the Industrial Products sector are discussed below:
Greif, Inc. (GEF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
GEF delivered a trailing four-quarter earnings surprise of 7.7%, on average. GEF’s earnings estimates have increased 13.4% for fiscal 2023 in the past 60 days. Its shares have risen 7% in the past year.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank of 2. AOS’ earnings surprise in the last four quarters was 8%, on average.
In the past 60 days, estimates for A. O. Smith’s earnings estimates have remained steady for 2023. The stock has gained 29.1% in the past year.
Deere & Company (DE - Free Report) presently carries a Zacks Rank of 2. DE’s earnings surprise in the last four quarters was 7.2%, on average.
In the past 60 days, estimates for Deere & Company’s fiscal 2023 earnings have increased 4%. The stock has rallied 37.6% in the past year.