Applied Industrial Technologies, Inc. (AIT) Hit a 52 Week High, Can the Run Continue?

Shares of Applied Industrial Technologies (AIT) have been strong performers lately, with the stock up 6.8% over the past month. The stock hit a new 52-week high of $286.66 in the previous session. Applied Industrial Technologies has gained 10% since the start of the year compared to the 19.8% gain for the Zacks Industrial Products sector and the 16.3% return for the Zacks Manufacturing - General Industrial industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 28, 2025, Applied Industrial Technologies reported EPS of $2.63 versus consensus estimate of $2.47.For the current fiscal year, Applied Industrial Technologies is expected to post earnings of $10.59 per share on $4.84 in revenues. This represents a 4.64% change in EPS on a 6.14% change in revenues. For the next fiscal year, the company is expected to earn $11.54 per share on $5.08 in revenues. This represents a year-over-year change of 8.92% and 4.82%, respectively.Valuation MetricsApplied Industrial Technologies may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Applied Industrial Technologies has a Value Score of D. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 26.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.8X. On a trailing cash flow basis, the stock currently trades at 23.5X versus its peer group's average of 19.4X. Additionally, the stock has a PEG ratio of 2.88. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Applied Industrial Technologies currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Applied Industrial Technologies passes the test. Thus, it seems as though Applied Industrial Technologies shares could have potential in the weeks and months to come.How Does AIT Stack Up to the Competition?Shares of AIT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MUELLER WATER PRODUCTS (MWA). MWA has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of D.Earnings were strong last quarter. MUELLER WATER PRODUCTS beat our consensus estimate by 11.76%, and for the current fiscal year, MWA is expected to post earnings of $1.41 per share on revenue of $1.47 billion.Shares of MUELLER WATER PRODUCTS have gained 8.1% over the past month, and currently trade at a forward P/E of 19.03X and a P/CF of 16.61X.The Manufacturing - General Industrial industry may rank in the bottom 62% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for AIT and MWA, even beyond their own solid fundamental situation.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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(AIT): Free Stock Analysis Report MUELLER WATER PRODUCTS (MWA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks