Important note

This AI stock analysis for Applied Industrial Technologies is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Applied Industrial Technologies - AI Stock Analysis

Analysis generated October 10, 2024

Applied Industrial Technologies (NYSE: AIT) is a distributor of bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, and other industrial supplies. The company leverages its strong vendor relationships and a vast network of service centers to offer a broad product range and technical support to its customers.

Fundamental Analysis

For the last quarter, Applied Industrial Technologies reported a revenue of $1.16 billion. This is an increase of 1.42% compared to the previous quarter and a 0.80% increase year-over-year, which indicates a steady growth trajectory. Growing revenue is crucial as it suggests increasing sales and market share.

Net income for the last quarter was $103 million, an increase of 6.45% from the quarter before and a significant 12.23% increase compared to the same quarter last year. This robust growth in net income is a positive indicator of the company's profitability and efficiency in managing expenses.

The EBITDA for the last quarter stood at $147 million, reflecting a rise of 14.44% from the previous quarter and 9.10% year-over-year. A healthy EBITDA growth suggests that the company's core earnings are improving, which is a critical metric for assessing its operational performance.

Currently, the P/E ratio of Applied Industrial Technologies is 22.37. This value lies within a normal range, neither excessively high nor low, indicating that the stock is fairly valued by the market based on its earnings.

However, recent insider selling activities pose a bearish signal. It is often perceived as a lack of confidence in the company's future performance by its executives.

Technical Analysis

The current stock price is $219.14, a 10.80% increase from a month ago and a substantial 37.12% increase year-over-year. These figures reflect a strong positive trend in both short-term and long-term perspectives.

Despite these gains, the trend is bearish as the current SMA10 is $221.43, which is lower than the previous SMA10 of $221.83. This suggests a potential downward trend in price movement. Additionally, the RSI is at 25.7, indicating the stock is potentially oversold and may be due for a short-term bullish correction.

Alternative Data Analysis

There are currently 400 open positions at Applied Industrial Technologies, a 20% decrease in the last couple of months. This reduction could indicate cost-cutting measures or an effort to improve margins, which may not be favorable for long-term growth.

However, the company's customer acquisition data is promising. Visitors to the company's webpage have increased by 14% in the past few months, suggesting growing customer interest. Furthermore, their Instagram page followers have seen a 19% increase, indicating rising engagement and awareness.

The company's AI score from AltIndex stands at 70, which is interpreted as a buy signal. This score considers various factors, including fundamentals, technicals, and alternative data, suggesting a favorable outlook for the stock.

Conclusion and Recommendation

Applied Industrial Technologies demonstrates strong financial health with consistent revenue, net income, and EBITDA growth. Despite technical indicators suggesting a bearish trend and recent insider selling, the stock shows potential for upside due to its oversold RSI condition. On the alternative data front, increased web and social media engagement counterbalance the reduced job postings.

Overall, considering the robust financial performance and positive alternative data indicators, coupled with the AI score's buy signal, Applied Industrial Technologies appears to be an attractive investment. Investors should be cautious of the recent bearish technical signals but can consider a buy position, with close attention to future earnings reports and market conditions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.