Applied Industrial Technologies, Inc. (AIT) Hit a 52 Week High, Can the Run Continue?

Company Performance - Applied Industrial Technologies (AIT) shares have increased by 2.1% over the past month and reached a new 52-week high of $178.17 [1] - Year-to-date, AIT has gained 2.6%, while the Zacks Industrial Products sector and the Zacks Manufacturing - General Industrial industry have returned 14.6% and 23.2%, respectively [1] Earnings and Revenue - AIT has a strong record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters [2] - In the latest earnings report on October 26, 2023, AIT reported EPS of$ 2.39, surpassing the consensus estimate of $2.07, and beat the revenue estimate by 0.37% [2] - For the current fiscal year, AIT is expected to post earnings of$ 9.43 per share on revenues of $4.54 billion, reflecting a 7.77% change in EPS and a 2.83% change in revenues [2] - For the next fiscal year, earnings are projected to be$ 9.52 per share on revenues of $4.64 billion, indicating a year-over-year change of 0.95% in EPS and 2.22% in revenues [2] Valuation Metrics - AIT currently trades at 18.8X current fiscal year EPS estimates, below the peer industry average of 20.7X [4] - On a trailing cash flow basis, AIT trades at 17.2X compared to the peer group's average of 13.7X, suggesting it is not in the top echelon from a value perspective [4] - AIT has a Value Score of B, a Growth Score of B, and a Momentum Score of F, resulting in a combined VGM Score of B [3] Zacks Rank - AIT holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, meeting the criteria for investors seeking stocks with strong potential [5] - The recommendation is to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating AIT has room for further growth [5] Industry Comparison - The Manufacturing - General Industrial industry is in the top 29% of all industries, providing favorable conditions for AIT and its peers [7] - Parker-Hannifin Corporation (PH), a peer, also has a Zacks Rank of 2 (Buy) and is expected to post earnings of$ 23.23 per share on revenues of $19.97 billion for the current fiscal year [6]