Applied Industrial Technologies is a high-quality industrial distribution franchise — earning a perfect 9-out-of-9 Piotroski financial health score and recognized as best-in-class among peers on margins — but the stock trades just 1.2% below its price target with a risk/reward ratio of 0.26-to-1 that is deeply unfavorable for new exposure. Falling on-balance volume and a 2.2x average-volume surge on a recent selloff day introduce a near-term distribution signal that adds caution to an otherwise sound fundamental picture.
Thesis pillars
- Stretched Valuation Unfavorable Risk Reward→Stable
- Piotroski Perfect Score Best In Class Margins→Stable
- Bearish Volume Distribution Signal→Stable
- +1 more pillar — see the Why tab for full reasoning
Applied Industrial Technologies (AIT) Stock Analysis
Range Bound setup
Industrials · Industrial Distribution
Sell if holding. Analyst target reached at $330.85 — A.R:R is negative (-1.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: United States (88.0%).
Applied Industrial Technologies distributes industrial motion, power, control, and automation products through two segments—Service Center (66% of FY2025 sales) and Engineered Solutions (34%)—via a network of approximately 600 facilities across North America and selected... Read more
Sell if holding. Analyst target reached at $330.85 — A.R:R is negative (-1.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: United States (88.0%). Chart setup: RSI 59 mid-range, Bollinger mid-band. Score 5.0/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 40d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
About Applied Industrial Technologies
About Applied Industrial Technologies
Applied Industrial Technologies' FY2025 sales split between the Service Center segment (66%) and Engineered Solutions segment (34%), with 88% of sales originating in the United States and the largest international market being Canada at 6%. At June 30, 2025, the company operated through approximately 600 facilities across seven countries, with 6,800 employee associates—5,250 in the United States, 650 in Canada, and 900 in other locations.
Applied earns revenue by distributing more than 9.2 million stock-keeping units from thousands of product manufacturers to industrial customers across MRO, OEM, and new-installation applications. The Service Center segment focuses on bearings, power transmission, hydraulic, and pneumatic product distribution through local service centers acting as inventory hubs for critical-breakdown situations. The Engineered Solutions segment—which contributed over 40% of consolidated EBITDA—specializes in hydraulic and pneumatic systems design, specialty flow control, and advanced automation technologies including machine vision, collaborative robots, and industrial networking. No single customer accounts for more than 5% of fiscal 2025 sales, and supplier authorizations are non-exclusive and terminable by either party. Purchasing incentives tied to volume attainment from product suppliers represent a margin element that declines when customer demand softens, creating a procyclical earnings pattern.
Show full overview
Applied's pricing model exposes the company to both inflationary and deflationary cycles. A portion of contracts permit inflationary price pass-through, but the remainder depends on negotiated increases that may lag input cost changes. If deflation in raw materials or energy prices reduces selling prices, gross margins could erode even with stable volumes—a dynamic the 10-K explicitly identifies as a risk regardless of price direction. Total debt of $572.3 million at June 30, 2025, combined with the capital requirements of continued acquisitions—which the company cites as integral to growth in a fragmented market—means margin compression in a prolonged pricing downcycle could weigh on the company's financial flexibility.
See also: Industrials · Industrial Distribution
From Applied Industrial Technologies's most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-07-06Recent Developments — Applied Industrial Technologies
Latest news
- NEWS DA Davidson Initiates Coverage On Applied Industrial Techs with Buy Rating, Announces Price Target of $380 — benzinga Jun 16, 2026 positive
- NEWS Oppenheimer Maintains Outperform on Applied Industrial Techs, Raises Price Target to $350 — benzinga Apr 29, 2026 positive
- NEWS Earnings Scheduled For April 28, 2026 — benzinga Apr 28, 2026 neutral
- NEWS Applied Industrial Techs Sees Q4 GAAP EPS $2.85-$2.96 vs $2.87 Est; Sees Sales $1.280B-$1.300B vs $1.280B Est. — benzinga Apr 28, 2026 positive
- NEWS Applied Industrial Techs Raises FY2026 GAAP EPS Guidance from $10.45-$10.75 to $10.64-$10.75 vs $10.67 Est; Raises FY202 — benzinga Apr 28, 2026 positive
Generated 2026-07-06T04:40:26Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicUnited States88%10-K Item 1: 'Our operations are primarily based in the United States where 88% of our fiscal 2025 sales were generated.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $330.85 — A.R:R is negative (-1.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: United States (88.0%). Chart setup: RSI 59 mid-range, Bollinger mid-band. Prior stop was $313.77. Score 5.0/10, moderate confidence.
Take-profit target: $338.57 (+2.3% upside). Prior stop was $313.77. Stop-loss: $313.77.
Concentration risk — Geographic: United States (88.0%); Analyst target reached - limited upside remaining; Near 52-week high (4.2% away).
Applied Industrial Technologies trades at a P/E of 31.2 (forward 28.1). TrendMatrix value score: 4.1/10. Verdict: Sell.
12 analysts cover AIT with a consensus score of 4.1/5. Average price target: $351.
What does Applied Industrial Technologies do?Applied Industrial Technologies distributes industrial motion, power, control, and automation products through two...
Applied Industrial Technologies distributes industrial motion, power, control, and automation products through two segments—Service Center (66% of FY2025 sales) and Engineered Solutions (34%)—via a network of approximately 600 facilities across North America and selected international markets. Revenue comes from MRO and OEM sales to industrial customers; 88% of FY2025 sales originated in the U.S., and no single customer exceeds 5% of sales.