Is Applied Industrial Technologies (AIT) Stock Outpacing Its Industrial Products Peers This Year?
For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Applied Industrial Technologies (AIT) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.
Applied Industrial Technologies is one of 216 individual stocks in the Industrial Products sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Applied Industrial Technologies is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AIT's full-year earnings has moved 3.7% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, AIT has moved about 38.4% on a year-to-date basis. Meanwhile, stocks in the Industrial Products group have gained about 17.4% on average. As we can see, Applied Industrial Technologies is performing better than its sector in the calendar year.
One other Industrial Products stock that has outperformed the sector so far this year is Alamo Group (ALG). The stock is up 50.6% year-to-date.
Over the past three months, Alamo Group's consensus EPS estimate for the current year has increased 5%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Applied Industrial Technologies belongs to the Manufacturing - General Industrial industry, a group that includes 41 individual companies and currently sits at #86 in the Zacks Industry Rank. This group has gained an average of 24.5% so far this year, so AIT is performing better in this area.
In contrast, Alamo Group falls under the Manufacturing - Farm Equipment industry. Currently, this industry has 8 stocks and is ranked #170. Since the beginning of the year, the industry has moved -9.2%.
Investors interested in the Industrial Products sector may want to keep a close eye on Applied Industrial Technologies and Alamo Group as they attempt to continue their solid performance.
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