GET DAILY SIGNALSApplied Industrial Technologies (AIT): A Look at This Industrial Distributor's Operations and Position
Key Takeaways
- AIT is the New York Stock Exchange ticker for Applied Industrial Technologies, Inc., a value-added industrial distributor and technical solutions provider based in Cleveland, Ohio.
- The company was founded in 1923 and was formerly known as Bearings, Inc. before adopting its current name in 1997.
- Applied operates through two reportable segments: Service Center Based Distribution and Engineered Solutions.
- The business serves maintenance, repair, and operations (MRO) and original equipment manufacturer (OEM) customers across North America, Australia, New Zealand, Singapore, and Costa Rica.
- Its product portfolio spans bearings, power transmission, fluid power, flow control, and automation technologies, supported by engineering and repair services.
Introduction
Applied Industrial Technologies, Inc. is a value-added distributor and technical solutions provider for industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Rather than manufacturing its own products, the company distributes a vast catalog of industrial components and pairs them with engineering, design, integration, and repair services that help customers keep production equipment running. Investors follow AIT as a way to gain exposure to industrial activity across the United States and other markets, because demand for its products tends to track manufacturing, infrastructure, and maintenance spending. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Company Overview and Business Model
Applied Industrial Technologies traces its roots to 1923, when it was founded as a distributor of ball bearings. The company was long known as Bearings, Inc. before changing its name to Applied Industrial Technologies, Inc. in 1997, reflecting its expansion well beyond bearings. It is headquartered in Cleveland, Ohio, and its shares trade on the New York Stock Exchange under the ticker AIT. Neil Schrimsher serves as President and Chief Executive Officer.
The company's business model combines broad product distribution with technical expertise. It maintains a network of roughly 580 facilities and thousands of employees, offering millions of stock-keeping units (SKUs). By bundling products with services such as inventory management, system design, fabrication, and equipment repair, Applied aims to add value beyond simple order fulfillment and build long-term customer relationships.
Applied reports results through two segments. The Service Center Based Distribution segment supplies industrial bearings, motors, belting, drives, couplings, pumps, linear motion components, hydraulic and pneumatic parts, filtration supplies, and hoses, primarily through local service centers. The Engineered Solutions segment focuses on higher-margin, more specialized work: distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power systems, engineered flow control products, and advanced automation technologies. Engineered Solutions has grown in importance and represented more than a third of total sales in recent fiscal years. From what I see, this segment mix stands out as a key differentiator.
Products, Markets, and Competitive Position
Applied serves a diverse set of end markets, including agriculture and food processing, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities. Its customers fall into two broad groups: MRO buyers who maintain and repair existing equipment, and OEMs that incorporate Applied's components into the machinery they build. This dual exposure helps balance demand across economic cycles, because MRO activity tends to be steadier than new-equipment spending.
Geographically, the company generates the large majority of its revenue in the United States, with additional operations in Canada, Mexico, Australia, New Zealand, Singapore, and Costa Rica. Its competitive positioning rests on scale, technical know-how, and multi-channel distribution. As a distributor, Applied competes with other large industrial distributors as well as local and regional suppliers, and it differentiates itself through engineering services, system integration, and specialized application expertise rather than price alone.
Why Investors Follow AIT
Applied Industrial Technologies attracts investor attention because its financial profile is closely tied to broad industrial and manufacturing activity. When factories, utilities, and infrastructure operators spend on maintenance and upgrades, demand for the company's products and services tends to rise. The company has also pursued a growth strategy centered on expanding its higher-margin Engineered Solutions segment, including through acquisitions, which management has cited as a driver of revenue and margin expansion. I checked recent trends here with Tickeron’s AI Trend Prediction Engine for additional context.
Long-term growth drivers include automation and robotics adoption, reshoring and rebuilding of North American manufacturing capacity, and aging industrial infrastructure that requires ongoing maintenance. Applied's extensive product catalog, service network, and engineering capabilities position it to capture spending across many of these trends. Its diversified customer base and blend of MRO and OEM revenue are additional features that investors weigh when evaluating its market position.
Risks and Important Considerations
As an industrial distributor, Applied Industrial Technologies is sensitive to the health of the manufacturing and industrial economy. An economic slowdown, reduced capital spending, or weaker industrial production can reduce demand for its products. The company also faces intense competition from other national and regional distributors, which can pressure margins.
Operationally, Applied manages a large and complex inventory across many product categories and facilities, exposing it to supply-chain disruptions, pricing fluctuations, and foreign-exchange movements in its international markets. Its growth strategy includes acquisitions, which carry integration risks and can affect the financial profile. Because a substantial portion of revenue comes from the United States, the company is also exposed to domestic trade policy, interest rates, and broader macroeconomic conditions. Investors should consider these factors alongside the company's long-term strategy.
Enhancing My Research Process
In my work following names like AIT, I rely on Tickeron’s AI Screener to efficiently screen thousands of stocks and ETFs using technical indicators, fundamentals, volatility, trends, AI-generated signals, industries, price patterns, and customizable filters. It surfaces ideas that align with specific strategies and offers a structured way to explore and compare candidates across sectors.
Conclusion
Applied Industrial Technologies has evolved over more than a century from a bearing distributor into a diversified, service-driven supplier of industrial motion, fluid power, flow control, and automation solutions. Its combination of broad product distribution, engineering expertise, and a growing Engineered Solutions segment gives it a distinctive market position within industrial distribution. While its performance is tied to the industrial economy, the company's scale, technical capabilities, and diversified customer base help explain why it remains a closely watched name among investors seeking exposure to the manufacturing and maintenance sectors.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
AIT in upward trend: price may jump up because it broke its lower Bollinger Band on October 27, 2026
AIT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 30 of 34 cases where AIT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 88%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where AIT's RSI Oscillator exited the oversold zone, 14 of 16 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 88%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.63% 3-day Advance, the price is estimated to grow further. Considering data from situations where AIT advanced for three days, in 227 of 339 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 22, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AIT as a result. In 59 of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 63%.
The Moving Average Convergence Divergence Histogram (MACD) for AIT turned negative on October 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 27 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 53%.
AIT moved below its 50-day moving average on October 22, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AIT crossed bearishly below the 50-day moving average on October 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 50%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AIT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 48%.
The Aroon Indicator for AIT entered a downward trend on November 02, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 9 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 35 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 43 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 60 (best 1 - 100 worst), indicating fairly steady price growth. AIT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.890) is normal, around the industry mean (4.091). P/E Ratio (26.916) is within average values for comparable stocks, (0.309). Projected Growth (PEG Ratio) (2.812) is also within normal values, averaging (2.538). Dividend Yield (0.007) settles around the average of (0.467) among similar stocks. P/S Ratio (2.402) is also within normal values, averaging (3.013).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a distributor of bearings, power transmission components and other industrial products
Industry ElectronicsDistributors
Advertisement