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Valued at a market cap of $44.3 billion, AMETEK, Inc. (AME) manufactures and sells electronic instruments and electromechanical devices. The Berwyn, Pennsylvania-based company, specializes in manufacturing instruments employed for monitoring, examining, calibration, and display purposes in the aerospace, power, and industrial instrumentation markets.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and AMETEK fits the label perfectly. The company is known for its automation and precision motion control solutions, electrical interconnects, specialty metals, and thermal management systems.
AME is currently trading 4.4% below its 52-week high of $198.33, reached on Nov. 25. Shares of this electronic instruments manufacturer gained 15.6% over the past three months, outpacing the broader Industrial Select Sector SPDR Fund’s (XLI) 9% gains during the same time frame.
However, in the longer term, AME has gained 20.8% over the past 52 weeks, underperforming XLI’s 27.9% returns. On a YTD basis, shares of AME are up 15.2%, lagging behind XLI’s 22.2% gains over the same time frame.
To confirm its recent bullish trend, AME has been trading above its 200-day and 50-day moving average since late October.
On Oct. 31, shares of AME jumped 8.5% following its Q3 earnings release. The company’s revenue of $1.71 billion increased 5.3% from a year ago and came in line with the consensus estimates, while its adjusted EPS grew 1.2% year-over-year to $1.66 and exceeded the forecasted figure by 2.6%. Moreover, the company slightly raised its full-year adjusted EPS guidance, which might have further enhanced investor confidence.
Yet AME has lagged behind its rival, ITT Inc. (ITT), which has gained nearly 34.7% over the past 52 weeks and 28.3% on a YTD basis.
Looking at AME’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 14 analysts covering it, and the mean price target of $198.58 suggests a modest 4.6% premium to its current levels.
