Wall Street expects a year-over-year increase in earnings on higher revenues when Applied Industrial Technologies (AIT) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 25, 2024, might help the stock move higher if these key numbers ar ...

Industry Overview - The U.S. manufacturing sector is experiencing a rebound driven by higher demand, following a period of struggle due to slowing demand and higher borrowing rates [1] - Industrial production rose by 0.4% in March, with manufacturing output increasing by 0.5% [1] - Year-over-year production at U.S. factories increased by 0.8% in March, attributed to a 3.1% rise in motor vehicles and parts output [1] - Manufacturing accounts for 10.4% of the U.S. economy, indicating its significant role [1] - The Federal Reserve's monetary tightening campaign has led to a 525 basis point increase in interest rates to combat inflation [1] Economic Indicators - New orders for U.S.-made manufactured goods rose by 1.4% in February, signaling a boost in manufacturing activity [2] - The Institute for Supply Management's manufacturing PMI rose to 50.3 in March, marking the first reading above 50 since September 2022 [2] Company Highlights - **Hubbell Incorporated (HUBB)**: Expected earnings growth of 7.2% for the current year, with a Zacks Rank of 2 [3] - **A. O. Smith Corporation (AOS)**: Expected earnings growth of 7.6% for the current year, with a Zacks Rank of 2 [4] - **AZZ Inc. (AZZ)**: Expected earnings growth of 23.9% for the current year, with a Zacks Rank of 1 [5] - **Applied Industrial Technologies, Inc. (AIT)**: Expected earnings growth of 8.5% for the current year, with a Zacks Rank of 1 [6] - **Luxfer Holdings PLC (LXFR)**: Expected earnings growth of 21.3% for the current year, with a Zacks Rank of 2 [6]

Several highly ranked stocks are standing out in terms of momentum this spring and seeing a very positive trend of upward earnings estimate revisions.Belonging to the Zacks Rank #1 (Strong Buy) list, here are three of these top-rated stocks to consider at the moment.Applied Industrial Technologies (AIT) Along with rising EPS estimates, Applied Industrial Technologies’ improved cash flow is very intriguing as a distributor of value-added industrial products including engineered fluid power components, bearin ...

Industry Overview - The U.S. manufacturing sector is showing signs of recovery, with new orders for manufactured goods increasing by 1.4% in February after a decline of 3.8% in January, surpassing the consensus estimate of 1% [1] - Year-over-year factory orders rose by 1% in February, driven by significant increases in orders for commercial aircraft (up 24.6%) and motor vehicles (up 0.3%) [1] - The manufacturing PMI rose to 50.3 in March, marking the first reading above 50 since September 2022, ending 16 months of contraction in manufacturing activity [2] Economic Context - The Federal Reserve has raised interest rates by 525 basis points since March 2022 due to high inflation, which has negatively impacted the manufacturing sector that constitutes 10.4% of the economy [2] - Inflation has decreased significantly over the past year, and the Federal Reserve has maintained interest rates since July 2023, with plans to cut rates at least three times by the end of the year [2][3] Company Insights - **Caterpillar Inc. (CAT)**: Expected earnings growth of 0.6% for the current year, with a Zacks Consensus Estimate improvement of 3.5% over the past 60 days; currently holds a Zacks Rank 2 [4][5] - **Hubbell Incorporated (HUBB)**: Expected earnings growth of 7.2% for the current year, with a Zacks Consensus Estimate improvement of 0.6% over the past 60 days; currently holds a Zacks Rank 2 [4][5] - **Parker-Hannifin Corporation (PH)**: Expected earnings growth of 12.5% for the current year, with a Zacks Consensus Estimate improvement of 1.6% over the past 60 days; currently holds a Zacks Rank 2 [4][6] - **Applied Industrial Technologies, Inc. (AIT)**: Expected earnings growth of 8.5% for the current year, with a Zacks Consensus Estimate improvement of 2.5% over the past 60 days; currently holds a Zacks Rank 2 [4][6] - **A. O. Smith Corporation (AOS)**: Expected earnings growth of 6.8% for the current year, with a Zacks Consensus Estimate improvement of 0.5% over the past 60 days; currently holds a Zacks Rank 2 [4][7]

Core Viewpoint - Stocks reaching new 52-week highs can indicate potential investment opportunities, but they may also lead to profit-taking and price pullbacks. Not all stocks at these highs are overvalued, and some may continue to gain momentum due to strong fundamentals and market conditions [1][3]. Group 1: Stock Performance and Indicators - Stocks like Pilgrim's Pride Corporation (PPC), Xerox (XRX), and Applied Industrial Technologies (AIT) are expected to maintain upward momentum and reach new highs [1]. - A stock's current price relative to its 52-week high is a useful metric; a ratio greater than 0.8 indicates the stock is trading within 20% of its high [5]. - Positive price changes over the past four weeks and twelve weeks are indicators of continued upward momentum [6]. Group 2: Stock Screening Criteria - A screening process identifies stocks near their 52-week highs with strong earnings growth expectations and favorable value metrics [4]. - The Price-to-Earnings (P/E) ratio using forward estimates should be lower than the industry median to identify undervalued stocks [7]. - A one-year earnings per share (EPS) growth rate that meets or exceeds the industry median is crucial for selecting stocks with higher growth potential [8]. Group 3: Company-Specific Insights - Pilgrim's Pride is expanding its operations and enhancing marketing support, with a Zacks Consensus Estimate for 2024 earnings at $2.97 per share, showing a significant average surprise of 252.84% over the past four quarters [12]. - Xerox's strategic initiatives, including operational shifts and acquisitions, are expected to improve profitability, with a Zacks Consensus Estimate for 2024 earnings at $2.27 per share and an average surprise of 64.8% [13][14]. - Applied Industrial Technologies is benefiting from growth in various sectors, with a Zacks Consensus Estimate for fiscal 2024 earnings at $9.49 per share, reflecting an average surprise of 10.42% [15].

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the tr ...

Group 1 - Applied Industrial Technologies (AIT) has a strong history of beating earnings estimates, with an average surprise of 10.81% over the last two quarters [1] - In the most recent quarter, AIT reported earnings of $2.24 per share, exceeding the expected $2.11 per share by 6.16%, and in the previous quarter, it reported $2.39 per share against an estimate of $2.07 per share, resulting in a surprise of 15.46% [1] - Recent estimates for AIT have been increasing, and the Zacks Earnings ESP (Expected Surprise Prediction) is positive, indicating a strong potential for another earnings beat [2] Group 2 - The Zacks Earnings ESP for AIT is currently +0.63%, suggesting that analysts are optimistic about its near-term earnings potential [3] - AIT holds a Zacks Rank of 1 (Strong Buy), which, when combined with the positive Earnings ESP, indicates a high likelihood of another earnings beat [3] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [2]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, leveraging established price movements for profitable trades [1]. Group 1: Company Overview - Applied Industrial Technologies (AIT) currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [1]. - AIT has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [2]. Group 2: Performance Metrics - Over the past week, AIT shares increased by 0.18%, outperforming the Zacks Manufacturing - General Industrial industry, which rose by 0.08% [3]. - In the last month, AIT's shares rose by 4.92%, significantly better than the industry's 1.1% performance [3]. - AIT shares have increased by 15.21% over the past quarter and 50.59% over the last year, while the S&P 500 only moved 10.16% and 27.31% respectively [4]. Group 3: Trading Volume - AIT's average 20-day trading volume is 669,576 shares, which serves as a bullish indicator when combined with rising stock prices [4]. Group 4: Earnings Outlook - In the past two months, one earnings estimate for AIT has increased, raising the consensus estimate from $9.26 to $9.49 for the full year [5]. - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [5]. Group 5: Conclusion - Given the positive performance metrics and earnings outlook, AIT is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [6].

Investors might want to bet on Applied Industrial Technologies (AIT) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and follow ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores.What are the Zacks Style Scores?Developed alongside ...