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Applied Industrial Technologies (AIT) Moves 5.1% Higher: Will This Strength Last?

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Applied Industrial Technologies, Inc. (AIT) shares ended the last trading session 5.1% higher at $95.01. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10.6% loss over the past four weeks.

Applied Industrial’s rally is largely driven by optimism regarding the company’s strength in its technology, life sciences, chemicals, utilities, mining and industrial machinery end markets, backed by a robust demand environment for its products.

This industrial products company is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of +11.3%. Revenues are expected to be $973.6 million, up 8.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Applied Industrial Technologies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AIT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Applied Industrial Technologies is part of the Zacks Manufacturing - General Industrial industry. Illinois Tool Works (ITW), another stock in the same industry, closed the last trading session 4.3% higher at $187.92. ITW has returned -11.9% in the past month.

Illinois Tool Works' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.23. Compared to the company's year-ago EPS, this represents a change of +6.2%. Illinois Tool Works currently boasts a Zacks Rank of #3 (Hold).

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