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Applied Industrial Hits 52-Week High on Solid Q1 & Outlook

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Shares of Applied Industrial Technologies, Inc. (AIT - Free Report) reached a new 52-week high of $57.40 during its trading session on Nov 18. This apex improved upon the last 52-week high of $56.90 on Nov 16.

Applied Industrial Technologies closed its trading session at $57.35, yielding year-to-date return of roughly 45.2%. The trading volume for the session was 0.19 million shares. Earnings estimate revisions for fiscal 2017 and fiscal 2018, along with an expected earnings growth rate of 12% for the next five years indicate the stock’s potential for further price appreciation.

Growth Drivers

Applied Industrial Technologies reported better-than-expected results in two of last four quarters, met expectations in one while lagged estimates in one. Average earnings surprise was a positive 4.93%. In first-quarter fiscal 2017 (ended Sep 30, 2016), the company’s earnings of 70 cents per share exceeded the Zacks Consensus Estimate of 61 cents by 14.8%. The company’s share price has grown roughly 20.2% since the first-quarter results release on Oct 26.  

In the quarters ahead, Applied Industrial Technologies anticipates benefiting from its business expansion efforts including better and innovative products and solutions offerings, penetrating deeper into existing markets and exploring opportunities in new markets. Also, Applied Industrial Technologies remains committed toward rewarding its shareholders handsomely through dividend payments and share buybacks, reflecting its solid cash position.

For fiscal 2017, Applied Industrial Technologies anticipates its earnings to come within $2.40−$2.60 per share range.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for Applied Industrial Technologies, Inc. grew 3.2% to $2.58 for fiscal 2017 and 1.1% to $2.73 for fiscal 2018. These estimates represent year-over-year growth of 3% for fiscal 2017 and 5.8% for fiscal 2018.

APPLD INDL TECH Price and Consensus

 

APPLD INDL TECH Price and Consensus | APPLD INDL TECH Quote

With a market capitalization of $2.2 billion, Applied Industrial Technologies, Inc. currently carries a Zacks Rank #2 (Buy). Other favorably ranked machinery stocks include EnerSys (ENS - Free Report) , Broadwind Energy, Inc. (BWEN - Free Report) and Middleby Corporation (MIDD - Free Report) . While EnerSys sports a Zacks Rank #1 (Strong Buy), both Broadwind Energy and Middleby Corporation carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

EnerSys posted an average positive earnings surprise of 3.01% in the last four quarters. Also, the earnings estimates for fiscal 2017 have been revised upward over the past 60 days.

Broadwind Energy, Inc’s bottom-line estimates for 2016 and 2017 have been revised upward in the last 60 days. Also, Middleby Corporation reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 15.93%. In addition, earnings estimates for 2016 and 2017 have improved over the past 60 days.

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