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AIT vs WSO
Which Stock Would AI Choose? Applied Industrial Technologies (AIT) vs. Watsco (WSO) Stock Comparison
Key Takeaways
- Applied Industrial Technologies (AIT) has demonstrated stronger year-to-date share price appreciation compared to Watsco (WSO), with AIT trading near its 52-week high while WSO has approached recent lows.
- Both companies operate in industrial distribution, with AIT focused on broader industrial products and services and WSO emphasizing heating, ventilation, and air conditioning (HVAC) equipment.
- Recent quarterly results showed sales growth for both, though WSO reported a modest revenue miss in its latest quarter amid stabilizing market conditions.
- AIT benefits from consistent organic growth and acquisition contributions, while WSO highlights e-commerce expansion and operational efficiencies despite broader industry headwinds.
- Valuation metrics indicate AIT trades at a lower price-to-earnings ratio relative to WSO, reflecting differing market sentiment on growth prospects.
- Relative performance in recent market activity underscores contrasting momentum, with AIT showing greater resilience amid industrial demand trends.
Introduction
This comparison examines Applied Industrial Technologies (AIT) and Watsco (WSO), two established players in the industrial distribution sector. Both companies serve business customers with specialized products and services, yet they differ in end-market exposure and operational focus. Investors and traders interested in sector rotation, relative value, or momentum-driven strategies may find this analysis relevant for assessing positioning within the broader industrials space. The review draws on verifiable financial metrics, recent earnings disclosures, and observable price behavior to highlight key contrasts without forward-looking projections.
AIT Overview and Recent Performance
Applied Industrial Technologies (AIT) distributes industrial products including bearings, power transmission components, and engineered solutions across service centers and specialized segments. In recent market activity, the stock has traded near its 52-week high of approximately $362.93, closing around $359.90 as of early August 2026, reflecting a year-to-date gain exceeding 40%. Fiscal third-quarter results showed net sales of $1.3 billion, up 7.3% year-over-year with 6.0% organic growth, supported by contributions from acquisitions and steady demand in service and engineered solutions areas. Sentiment has been influenced by consistent earnings delivery and share repurchase authorizations, contributing to outperformance relative to broader market indices in recent weeks.
WSO Overview and Recent Performance
Watsco (WSO) specializes in the distribution of air conditioning, heating, and refrigeration equipment, serving contractors and dealers primarily in North America. The stock has experienced downward pressure in recent market activity, trading near its 52-week low around $316 and posting a year-to-date decline. Second-quarter results reflected sales of $2.10 billion, up 2.1% year-over-year, though below consensus expectations amid industry stabilization. Growth was supported by residential HVAC demand and digital sales channels, with management noting continued operating efficiencies and inventory management. Recent performance has been shaped by these factors alongside broader market conditions affecting HVAC-related equities.
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Head-to-Head Comparison
Applied Industrial Technologies (AIT) and Watsco (WSO) share a distribution business model but diverge in sector exposure, with AIT maintaining broader industrial coverage and WSO concentrated in HVAC. Recent momentum favors AIT through sustained organic sales expansion and proximity to price highs, contrasting with WSO’s more modest growth and price weakness. Growth drivers for AIT include acquisitions and diversified demand, while WSO emphasizes e-commerce adoption and margin stability. Risk factors differ accordingly, as AIT faces general industrial cyclicality and WSO contends with seasonal and weather-related HVAC variables. Market sentiment, reflected in relative price action and valuation multiples, positions AIT with a lower price-to-earnings ratio amid its stronger recent trajectory.
Tickeron AI Verdict
Based on observable factors including trend consistency, relative price stability near recent highs, and steadier sales momentum in recent periods, Tickeron’s AI would likely assign a higher probabilistic preference to Applied Industrial Technologies (AIT) over Watsco (WSO) in the current environment. This assessment rests on measurable performance differentials rather than definitive outcomes, acknowledging that market conditions can shift and individual results vary.
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.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is AIT is a Hold and WSO is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
AIT’s FA Score shows that 2 FA rating(s) are green whileWSO’s FA Score has 1 green FA rating(s).
- AIT’s FA Score: 2 green, 3 red.
- WSO’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
AIT’s TA Score shows that 5 TA indicator(s) are bullish while WSO’s TA Score has 4 bullish TA indicator(s).
- AIT’s TA Score: 5 bullish, 4 bearish.
- WSO’s TA Score: 4 bullish, 6 bearish.
Price Growth
AIT (@Electronics Distributors) experienced а -1.63% price change this week, while WSO (@Electronics Distributors) price change was -7.12% for the same time period.
The average weekly price growth across all stocks in the @Electronics Distributors industry was +0.02%. For the same industry, the average monthly price growth was +8.18%, and the average quarterly price growth was +5.93%.
Reported Earning Dates
AIT is expected to report earnings on Oct 22, 2026.
WSO is expected to report earnings on Oct 15, 2026.
Industries' Descriptions
@Electronics Distributors (+0.02% weekly)Electronics distributors are companies that are involved in distribution of one or more of the following: electronic components, computer products/ peripherals and software products & services. Several electronics distributors are also becoming the point of contact for technical/pre- & post-sale support in many cases, in an attempt to bolster their position in the market. Tariffs and/or cross-border trade barriers are some of the potential threats to the electronics supply chain, but that could also potentially lead to re-directing to markets where tariffs/restrictions are lower depending on demand. The industry is also vulnerable in the event of economic slowdowns. Arrow Electronics, Inc., SYNNEX Corporation and Versum Materials, Inc. are some of the major electronics distributors in the U.S.
| AIT | WSO | AIT / WSO | |
| Capitalization | 13.2B | 13B | 102% |
| EBITDA | 612M | 734M | 83% |
| Gain YTD | 37.674 | -5.901 | -638% |
| P/E Ratio | 32.66 | 26.70 | 122% |
| Revenue | 4.84B | 7.24B | 67% |
| Total Cash | 172M | N/A | - |
| Total Debt | 365M | 486M | 75% |
AIT | WSO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 39 | 55 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 81 Overvalued | 10 Undervalued | |
PROFIT vs RISK RATING 1..100 | 6 | 83 | |
SMR RATING 1..100 | 44 | 52 | |
PRICE GROWTH RATING 1..100 | 43 | 79 | |
P/E GROWTH RATING 1..100 | 28 | 69 | |
SEASONALITY SCORE 1..100 | 50 | 38 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
WSO's Valuation (10) in the Building Products industry is significantly better than the same rating for AIT (81) in the Wholesale Distributors industry. This means that WSO’s stock grew significantly faster than AIT’s over the last 12 months.
AIT's Profit vs Risk Rating (6) in the Wholesale Distributors industry is significantly better than the same rating for WSO (83) in the Building Products industry. This means that AIT’s stock grew significantly faster than WSO’s over the last 12 months.
AIT's SMR Rating (44) in the Wholesale Distributors industry is in the same range as WSO (52) in the Building Products industry. This means that AIT’s stock grew similarly to WSO’s over the last 12 months.
AIT's Price Growth Rating (43) in the Wholesale Distributors industry is somewhat better than the same rating for WSO (79) in the Building Products industry. This means that AIT’s stock grew somewhat faster than WSO’s over the last 12 months.
AIT's P/E Growth Rating (28) in the Wholesale Distributors industry is somewhat better than the same rating for WSO (69) in the Building Products industry. This means that AIT’s stock grew somewhat faster than WSO’s over the last 12 months.
| AIT | WSO | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 58% | 2 days ago 80% |
| Stochastic ODDS (%) | 2 days ago 51% | 2 days ago 66% |
| Momentum ODDS (%) | 2 days ago 69% | N/A |
| MACD ODDS (%) | 2 days ago 70% | 7 days ago 69% |
| TrendWeek ODDS (%) | 2 days ago 51% | 2 days ago 64% |
| TrendMonth ODDS (%) | 2 days ago 66% | 2 days ago 59% |
| Advances ODDS (%) | 7 days ago 66% | 10 days ago 71% |
| Declines ODDS (%) | 2 days ago 48% | 2 days ago 69% |
| BollingerBands ODDS (%) | 2 days ago 56% | 2 days ago 68% |
| Aroon ODDS (%) | 2 days ago 66% | 2 days ago 52% |
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WSO and
Correlation & Price change
A.I.dvisor indicates that over the last year, WSO has been loosely correlated with AIT. These tickers have moved in lockstep 56% of the time. This A.I.-generated data suggests there is some statistical probability that if WSO jumps, then AIT could also see price increases.
| Ticker / NAME | Correlation To WSO | 1D Price Change % | ||
|---|---|---|---|---|
| WSO | 100% | -2.98% | ||
| AIT - WSO | 56% Loosely correlated | -0.02% | ||
| FERG - WSO | 56% Loosely correlated | -2.52% | ||
| SITE - WSO | 53% Loosely correlated | -2.39% | ||
| QXO - WSO | 48% Loosely correlated | -3.34% | ||
| MSM - WSO | 46% Loosely correlated | -0.52% | ||
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