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AMETEK, Inc. (AME), headquartered in Berwyn, Pennsylvania, manufactures electronic instruments and electromechanical devices. Valued at $39.04 billion by market cap, the company’s products include medical materials, motion control systems, sub-assemblies and connectors, gauges, titanium alloys, UPS systems, power inverters, and engine and aircraft condition monitoring systems. It also offers electronic cable assemblies, heavy vehicle custom instrumentation, polymers, engineered connectors, motors, blowers, and pumps for transportation.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and AME perfectly fits that description, signifying its substantial size, stability, and dominance in its industry. The company serves the medical, aerospace, defense, rubber, chemical, power, and oil and gas industries.
The leading industrial technology solutions provider has fallen 7.8% from its 52-week high of $186.33, which it hit on Mar. 21. Shares of AME are down 6.4% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 6.5% gains over the same time frame.
Longer term, AME shares have risen 9.9% over the past year, and in 2024, the stock is up 4%. By contrast, the NASX is up 16.6% on a YTD basis and 29.7% over the past 52 weeks.
The stock has been trading below its 50-day moving average since mid-June but above its 200-day moving average since early November 2023.
On May 22, AME shares closed up more than 2% after Oppenheimer upgraded the stock to Outperform from Market Perform with a price target of $200.
On May 2, AME reported its Q1 results. Its net income stood at $310.9 million, and adjusted EPS came in at $1.64, beating the consensus estimate of $1.59. The company’s revenue of $1.74 billion missed the Wall Street estimates of $1.78 billion. AME expects its EPS to come between $1.63 and $1.65 for the current quarter. It expects full-year EPS to come between $6.74 and $6.86. The stock closed down more than 6% on the day the results were released.
Despite its recent underperformance compared to the NASX, analysts are optimistic about AME’s prospects. The stock has a consensus rating of “Moderate Buy” from the 12 analysts covering it, and the mean price target of $185.73 is an 8.3% premium to current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
