We issued an updated research report on Applied Industrial Technologies, Inc. (AIT - Free Report) on Aug 20.
The industrial products distributor currently carries a Zacks Rank #5 (Strong Sell) and has a market capitalization of approximately $2.1 billion.
Below we discussed why it will be prudent for investors to avoid investing in the stock for now.
Share Price Performances & Earnings Estimate Revision: Market sentiments have been against Applied Industrial for quite some time now. Its stock price has decreased roughly 3.3% in the past three months against the industry’s decline of 1.7%.
The company reported weak results for fourth-quarter fiscal 2019 (ended Jun 30, 2019), with earnings and revenues lagging estimates by 14.3% and 4.5%, respectively. This was the company’s third consecutive quarter of weak results.
We believe that weak results and prevailing concerns created bearish sentiments for the stock. In the past seven days, the company’s earnings estimates for the first quarter of fiscal 2020 declined 8.1% to $1.14 and for the fiscal year (ending Jun 2020) moved down 5.9% to $4.75.
Applied Industrial Technologies, Inc. Price and Consensus