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Berwyn, Pennsylvania-based AMETEK, Inc. (AME) manufactures and sells electronic instruments and electromechanical devices. Valued at $38.1 billion by market cap, AME is a leading global provider of industrial technology solutions that manufactures advanced instruments for process, aerospace, power, and industrial markets and is a supplier of electrical interconnects, specialty metals, technical motors and systems, and floor care and specialty motors.
Shares of this machinery manufacturing giant have underperformed the broader market considerably over the past year. AME has gained 6.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.1%. In 2024, AME stock is down marginally, while SPX is up 17.3% on a YTD basis.
Narrowing the focus, AME has also lagged behind the Vanguard Industrials Index Fund ETF Shares (VIS). The exchange-traded fund has gained about 20.5% over the past year. Moreover, the ETF’s 11% gains on a YTD basis outshine the stock’s marginal losses over the same time frame.
On Aug. 1, AME shares closed down more than 8% after reporting its Q2 earnings results. Its adjusted EPS of $1.66 topped Wall Street expectations of $1.64. The company’s revenue was $1.7 billion, falling short of Wall Street forecasts of $1.8 billion. For Q3, AME expects its adjusted EPS to be between $1.60 and $1.62, down 1% to 2% year over year. The company expects full-year adjusted EPS to be between $6.70 and $6.80, up 5% to 7% year over year.
For the current fiscal year, ending in December, analysts expect AMETEK’s EPS to grow 6.1% to $6.77 on a diluted basis. The company’s earnings surprise history is solid. It beat the consensus estimate in each of the last four quarters.
Among the 13 analysts covering AME stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This configuration is more bullish than a month ago, with seven analysts suggesting a “Strong Buy.”
On Aug. 2, TD Cowen analyst Joseph C Giordano maintained a “Hold” rating on AME with a price target of $158, implying a potential downside of 4.2% from current levels.
The mean price target of $185.83 represents a 12.7% premium from AME’s current price levels. The Street-high price target of $215 suggests an upside potential of 30.4%.
On the date of publication, Neha Panjwani 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.
