(AIT) Applied Industrial - Ratings and Ratios

Applied Industrial Technologies is a leading distributor of industrial products and solutions, operating across multiple geographies, including North America, Australia, and parts of Asia and Central America. The companys comprehensive product portfolio encompasses industrial motion, power, control, and automation technology, catering to diverse industries such as agriculture, chemicals, forest products, and oil and gas, among others.

The companys business model is structured around two primary segments: Service Center Based Distribution and Engineered Solutions. Through its extensive network of service centers, Applied Industrial Technologies provides a broad range of products, including bearings, power transmission components, fluid power systems, and automation solutions, as well as technical support services and customized solutions like fabricated rubber shops and field installation services.

With a history dating back to 1923, the company has established a strong presence in the industrial distribution sector, serving various customer segments, including industrial machinery and equipment manufacturers, government entities, and companies in the energy and natural resources sectors. Its ability to provide a wide array of products and value-added services positions it as a critical partner for businesses requiring industrial supplies and solutions.

Analyzing the provided , we observe that the stocks last price is $229.13, slightly above its 20-day and 50-day simple moving averages (SMA20 and SMA50), indicating a relatively stable short-term trend. However, the stock is below its 200-day simple moving average (SMA200) of $236.22, suggesting a potential longer-term downtrend. The Average True Range (ATR) of 6.60, or 2.88%, indicates moderate volatility.

Considering the , Applied Industrial Technologies has a market capitalization of $8.76 billion and a price-to-earnings (P/E) ratio of 23.04, with a forward P/E of 22.32, suggesting a reasonable valuation relative to its earnings. The companys return on equity (RoE) stands at 22.01%, indicating a strong ability to generate profits from shareholders equity.

Forecasting the stocks performance based on the available data, a potential trading range could be influenced by its proximity to the SMA20 and SMA50, with support around $227-$226 and resistance near $236-$239. Given the moderate volatility and the stocks position relative to its moving averages, a cautious outlook is warranted. If the company continues to demonstrate strong financial performance, as indicated by its RoE, and the industrial distribution sector remains favorable, the stock could potentially challenge its SMA200. Conversely, failure to maintain its earnings growth or a downturn in the sector could lead to further decline.