Applied Industrial Technologies, Inc. (AIT - Free Report) seems to have lost its sheen on account of uncertainties related to the broader industrial cycle and other company-specific headwinds.
The distributor of value-added industrial products currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company belongs to the Zacks Manufacturing – General Industrial industry, which is at the bottom 33% (with the rank of 171) of more than 250 Zacks industries. We believe that the industry is suffering from adverse impacts of global uncertainties, unfavorable movements in foreign currencies, softness in the housing market and weakness in industrial production in the United States. Cost escalation due to tariff-related woes as well as commodity inflation, and high labor costs and freight charges are other concerns.
It is worth noting that Applied Industrial reported weaker-than-expected results for fourth-quarter fiscal 2019 (ended Jun 30, 2019), wherein earnings missed the Zacks Consensus Estimate by 14.29%. The bottom line also declined 1% on a year-over-year basis.
A glance at the company’s price trend in the past three months shows that it has lost nearly 6.8% compared with the industry’s and the Zacks Industrial Products sector’s 0.4% and 4.8% decline, respectively. However, the S&P 500 gained 2.4% during the same period.
Its earnings estimates were lowered, reflecting bearish sentiments. Over the past 30 days, the Zacks Consensus Estimate for Applied Industrial’s earnings has decreased 0.9% to $4.36 for fiscal 2020 (ending June 2020) and 0.8% to $4.76 for fiscal 2021 (ending June 2021).
Applied Industrial Technologies, Inc. Price and Consensus