AIT benefits from business strength, acquired assets and shareholder-friendly policies.
Persistent weakness in the manufacturing sector weighs on the Zacks Manufacturing - General Industrial industry's near-term prospects. DOV, AIT, GNRC and DXPE are a few stocks investors may consider buying.
Applied Industrial Technologies leverages M&A for growth, focusing on high-margin segments like flow control and engineered solutions to drive long-term profitability. AIT benefits from reshoring trends and increasing investment into production automation, with 88% of revenue generated in the U.S., positioning it well for future growth. Strong financial performance in FY2023, with 15.8% YoY revenue growth and a 34.3% increase in EPS, highlights effective strategic acquisitions and robust demand.
Applied Industrial's acquisition of Hydradyne is set to expand its footprint in the strategic Southeast U.S. region.
Here is how Applied Industrial Technologies (AIT) and Mueller Water Products (MWA) have performed compared to their sector so far this year.
Despite weakness in the manufacturing sector, recovery in the demand environment, with an improvement in the supply chain, augurs well for the industrial sector heading into 2025. ZBRA, RBC, AIT and POWL are likely to continue their momentum.
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AIT is set to benefit from strong momentum in the Service Center Based Distribution segment. However, weakness in the Engineered Solutions segment remains concerning.
Applied Industrial is set to expand its footprint in the strategic Southeast U.S. region with the acquisition of Hydradyne.
AIT stands to gain from strength in its Service Center Based Distribution segment. The company's measures to reward its shareholders are also encouraging.
AIT's organic growth is expected to accelerate due to pent-up demand, reshoring, automation trends, and a strong acquisition pipeline. Margins should improve from operating leverage, productivity initiatives, and focus on high-margin markets, despite recent headwinds from volume deleverage and higher costs. AIT trades at a discount to peers like W.W. Grainger and Fastenal, with potential for upward estimate revisions and continued valuation re-rating.
Explore Applied Industrial Technologies' (AIT) international revenue trends and how these numbers impact Wall Street's forecasts and what's ahead for the stock.