Applied Industrial Technologies
The industrial products distribution company earlier this month acquired Solutions Industrielles Chicoutimi and Spécialités Industrielles Harvey, which are two Quebec distributors."AIT, a leading industrial distributor of power transmission and fluid power supplies, should continue to increase revenue over the next five years at 8% compounded through improved product offerings, increased market presence, and the unbundling of value-added services (it historically has not charged for these services), including training and inventory management," Wells Fargo analysts wrote in a report Monday. "Moreover, AIT's margin initiatives, including faster implementation of vendor price increases and improved employee productivity, should drive the distributor's improved operating performance." Shares of Applied Industrial Technologies hit a 52-week high of $42.01 on Wednesday. The stock's 52-week low of $24.50 was set on Aug. 9. Applied Industrial Technologies has a forward P/E of 15.3X; the average for industrial suppliers is 16.9X. For comparison, both Fastenal (FAST) and W.W. Grainger (GWW) have higher forward P/Es of 29.2X and 17.5X respectively. Five of the eight analysts who cover Applied Industrial Technology rated it a hold; three gave it a buy rating. Applied Industrial Technologies gets an A- grade from TheStreet Ratings with a buy rating and $47.46 price target. The stock has risen 17.94% year to date.
Kennametal The engineered components supplier reported second-quarter earnings of $73.7 million, or 92 cents a share, last month. The performance was an improvement from year-ago earnings of $43.5 million, or 53 cents a share. "While one month does not indicate a trend, we are encouraged by the solid start to the new year with sales for the month of January estimated being up 10% on a tough y/y comp (Jan 2011 est. up 30% y/y)," Jefferies analysts wrote in a report Tuesday. "We anticipated the order rate to moderate due to tougher comparisons as well as look for some fx headwind as the year progresses." Shares of Kennametal hit a 52-week high of $46.66 on Wednesday. The stock's 52-week low of $29.30 was set on Oct. 4. Kennametal has a forward P/E of 10.7X; the average for industrial machinery is 15.2X. For comparison, Flowserve (FLS) and Donaldson (DCI) both have higher forward P/Es of 13.5X and 20.4X respectively. Nine of the 14 analysts who cover the company have buy ratings on the stock. Four analysts rate it at hold and one is at sell. TheStreet Ratings gives Kennametal a B+ grade with a buy rating and has a $54.50 price target on the shares. The stock has increased 24.07% year to date.
>To contact the writer of this article, click here: Alexandra Zendrian >To submit a news tip, send an email to: firstname.lastname@example.org. >To follow the writer on Twitter, go to Alexandra Zendrian.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV