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AMETEK, Inc. (AME), established in 1930 and headquartered in Berwyn, Pennsylvania, is a major player in electronic instruments and electromechanical devices. With a market cap of $44.7 billion, the company specializes in designing and manufacturing advanced monitoring, testing, calibration, and precision control solutions. AMETEK operates a network of cutting-edge facilities, offering various products and services, including analytical instruments, specialty motors, and high-performance materials.
Shares of AMETEK have climbed 26% over the past 52 weeks and 18.7% on a YTD basis, lagging behind the broader S&P 500 Index ($SPX), which rallied nearly 31.1% over the past year and 24.7% in 2024.
Narrowing the focus, AME has also lagged behind the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 32.9% over the past year and 23.4% on a YTD basis.
Despite prior underperformance driven by margin concerns and macroeconomic pressures, AMETEK’s shares rose 8.5% following the strong Q3 results on Oct. 31. The company reported $1.71 billion in revenue, a 5.3% year-over-year increase, in line with expectations, and delivered a non-GAAP EPS of $1.66, beating consensus by 2.6%.
Operationally, AMETEK maintained a solid operating margin of 26.1%, unchanged from the prior year, though gross margin slipped slightly to 36% from 37.1%. Management raised its full-year adjusted EPS guidance to $6.80 at the midpoint, signaling confidence in sustained growth despite margin pressures.
For the current fiscal year, ending in December, analysts expect AMETEK’s EPS to grow 6.6% to $6.80 on a diluted basis. The company’s earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 14 analysts covering AME stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” four “Holds,” and one “Strong Sell.”
This configuration has been consistent but attracted a “Strong Sell” rating over the past three months.
On Nov. 4, Jamie Cook from Truist Financial maintained a “Buy” rating on AME, with a price target of $221 – the Street-high, implying a potential upside of 12.9% from current levels. The mean price target of $197.75 represents a 1% premium to AME’s current price levels.
