We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Applied Industrial (AIT) Up 28% YTD: Will the Uptrend Continue?
Read MoreHide Full Article
Shares of Applied Industrial Technologies (AIT - Free Report) have rallied 28% in the year-to-date period, outperforming the industry’s 7.4% increase. This can be linked to strength across end markets, benefits of acquired assets and shareholder-friendly policies.
Image Source: Zacks Investment Research
Strength across the food and beverage, lumber and wood, mining, pulp and paper, energy, utilities and refining end markets are driving AIT’s growth. The Service Center Based Distribution segment is benefiting from growth in larger national accounts and fluid power aftermarket sales as well as benefits from sales force effectiveness initiatives. Sustained Maintenance, Repair, and Operations (MRO) activity and capex spending in process flow infrastructure are aiding the Engineered Solutions segment. Growth in off-highway mobile and industrial fluid power verticals, as well as higher margin process flow control products and solutions, augur well for the Engineered Solutions segment.
Successive acquisitions are contributing to Applied Industrial’s top-line growth. The acquisitions of Bearing Distributors and Cangro (September 2023) enhanced the company’s footprint and strategic growth initiatives across the U.S. Southeast and upper Northeast regions. The Advanced Motion Systems Inc. (April 2023) buyout expanded the company’s footprint in the upper Northeast region of the United States while helping to bolster relationships with leading suppliers.
Applied Industrial’s efforts to reward shareholders through dividends are encouraging. In the first quarter of fiscal 2024, Applied Industrial rewarded shareholders with dividends of $13.55 million, up 3.4% year over year. The company hiked its quarterly dividend rate by 2.9% in January 2023. In fiscal 2023, it paid out dividends worth $53.4 million, up 3.2% on a year-over-year basis.
Will the Momentum Continue?
Applied Industrial’s focus on pricing and cross-selling actions are expected to drive its growth. Focus on improving the product line, value-added services and initiatives to drive operational excellence and cost-saving efforts bolster the company’s growth prospects. The company’s investments in automation, Industrial Internet of Things (IIot), digital offerings and customer development initiatives augur well.
ITT has an estimated earnings growth rate of 16.2% and 10.9% for 2023 and 2024, respectively. Shares of the company have gained 27.1% in the year-to-date period.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 14%, on average.
A. O. Smith has an estimated earnings growth rate of 19.4% and 6.4% for 2023 and 2024, respectively. Shares of the company have gained 28.2% in the year-to-date period.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Applied Industrial (AIT) Up 28% YTD: Will the Uptrend Continue?
Shares of Applied Industrial Technologies (AIT - Free Report) have rallied 28% in the year-to-date period, outperforming the industry’s 7.4% increase. This can be linked to strength across end markets, benefits of acquired assets and shareholder-friendly policies.
Image Source: Zacks Investment Research
Strength across the food and beverage, lumber and wood, mining, pulp and paper, energy, utilities and refining end markets are driving AIT’s growth. The Service Center Based Distribution segment is benefiting from growth in larger national accounts and fluid power aftermarket sales as well as benefits from sales force effectiveness initiatives. Sustained Maintenance, Repair, and Operations (MRO) activity and capex spending in process flow infrastructure are aiding the Engineered Solutions segment. Growth in off-highway mobile and industrial fluid power verticals, as well as higher margin process flow control products and solutions, augur well for the Engineered Solutions segment.
Successive acquisitions are contributing to Applied Industrial’s top-line growth. The acquisitions of Bearing Distributors and Cangro (September 2023) enhanced the company’s footprint and strategic growth initiatives across the U.S. Southeast and upper Northeast regions. The Advanced Motion Systems Inc. (April 2023) buyout expanded the company’s footprint in the upper Northeast region of the United States while helping to bolster relationships with leading suppliers.
Applied Industrial’s efforts to reward shareholders through dividends are encouraging. In the first quarter of fiscal 2024, Applied Industrial rewarded shareholders with dividends of $13.55 million, up 3.4% year over year. The company hiked its quarterly dividend rate by 2.9% in January 2023. In fiscal 2023, it paid out dividends worth $53.4 million, up 3.2% on a year-over-year basis.
Will the Momentum Continue?
Applied Industrial’s focus on pricing and cross-selling actions are expected to drive its growth. Focus on improving the product line, value-added services and initiatives to drive operational excellence and cost-saving efforts bolster the company’s growth prospects. The company’s investments in automation, Industrial Internet of Things (IIot), digital offerings and customer development initiatives augur well.
Zacks Rank & Other Stocks to Consider
Applied Industrial carries a Zacks Rank #2 (Buy).
Below, we discuss some other top-ranked stocks.
ITT (ITT - Free Report) presently carries a Zacks Rank #2. The company pulled off a trailing four-quarter earnings surprise of 8%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ITT has an estimated earnings growth rate of 16.2% and 10.9% for 2023 and 2024, respectively. Shares of the company have gained 27.1% in the year-to-date period.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 14%, on average.
A. O. Smith has an estimated earnings growth rate of 19.4% and 6.4% for 2023 and 2024, respectively. Shares of the company have gained 28.2% in the year-to-date period.