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Valued at a market cap of $53 billion, AMETEK, Inc. (AME) is a leading global manufacturer of industrial technology solutions and electronic instruments. The Berwyn, Pennsylvania-based company’s extensive product portfolio features UV photometric analyzers, quadrupole mass spectrometers, moisture analyzers, and specialized motors used across diverse end markets such as aerospace, defense, medical, oil and gas, and factory automation.
This industrial company has outperformed the broader market over the past 52 weeks. Shares of AME have soared 28.2% over this time frame, while the broader S&P 500 Index ($SPX) has gained 26.5%. Moreover, on a YTD basis, the stock is up 12.7%, compared to SPX’s 8.1% rise.
Narrowing the focus, AME has also outpaced the State Street Industrial Select Sector SPDR ETF (XLI), which rose 23.7% over the past 52 weeks and 12.1% on a YTD basis.
On Apr. 30, AME shares surged 3.4% after delivering better-than-expected Q1 results. The company’s revenue increased 11.3% year-over-year to $1.9 billion, topping analyst estimates by a slight margin. Moreover, its adjusted EPS of $1.97 surpassed consensus expectations of $1.91. The management highlighted a surge in orders across both core divisions, especially in defense-related and semiconductor segments.
For the current fiscal year, ending in December, analysts expect AME’s EPS to grow 9.3% year over year to $8.12. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 13 “Strong Buy,” one “Moderate Buy,” and six "Hold” ratings.
The configuration is more bullish than two months ago, with 12 analysts suggesting a “Strong Buy” rating.
On May 1, Baird analyst Quinn Fredrickson maintained a "Neutral” rating on AME and raised its price target to $244, indicating a 5.3% potential upside from the current levels.
The mean price target of $259.35 suggests an 11.9% premium to its current price levels, while its Street-high price target of $280 implies a 20.8% potential upside.
