Stock of the Day

January 3, 2020

AMETEK (AME)

$186.11
-$2.67 (-1.4%)
Market Cap: $43.67B

About AMETEK

AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices in the North America, Europe, Asia, and South America, and internationally. The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets; power quality monitoring and c devices, uninterruptible power supplies, programmable power and electromagnetic compatibility test equipment, and sensors for gas turbines and dashboard instruments; heavy trucks, instrumentation, and controls for the food and beverage industries; and aircraft and engine sensors, power supplies, embedded computing, monitoring, fuel and fluid measurement, and data acquisition systems for aerospace and defense industry. Its EMG segment offers engineered medical components and devices, automation solutions, thermal management systems, specialty metals, and electrical interconnects; single-use and consumable surgical instruments, implantable components, and drug delivery systems; engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, and automation; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for thermal management, military and commercial aircraft, and military ground vehicles; motors for commercial appliances, food and beverage machines, hydraulic pumps, and industrial blowers; and operates a network of aviation maintenance, repair, and overhaul facilities. AMETEK, Inc. was incorporated in 1930 and is headquartered in Berwyn, Pennsylvania.

AMETEK Bull Case

Here are some ways that investors could benefit from investing in AMETEK, Inc.:

  • AMETEK, Inc. recently reported a quarterly earnings per share (EPS) of $1.87, exceeding analysts' expectations of $1.85, indicating strong financial performance.
  • The company has a solid net margin of 19.83%, which reflects its ability to convert revenue into profit effectively, making it an attractive investment.
  • AMETEK, Inc. has initiated a stock repurchase plan authorizing the buyback of $1.25 billion in shares, signaling management's confidence in the company's value and potentially increasing shareholder value.
  • The current stock price is $183.42, which is below the consensus price target of $204.67, suggesting potential for price appreciation.
  • Analysts have a consensus rating of "Moderate Buy" for AMETEK, Inc., with several recent upgrades, indicating positive sentiment in the market.

AMETEK Bear Case

Investors should be bearish about investing in AMETEK, Inc. for these reasons:

  • The company's revenue for the latest quarter was $1.76 billion, falling short of analyst expectations of $1.82 billion, which may raise concerns about future growth.
  • AMETEK, Inc. has a relatively high price-to-earnings (P/E) ratio of 30.93, which could indicate that the stock is overvalued compared to its earnings.
  • Despite a recent increase in dividends, the yield is only 0.66%, which may not be attractive for income-focused investors.
  • The stock has experienced a decline of 0.5% recently, which could indicate short-term volatility and investor uncertainty.
  • Insider Tony J. Ciampitti sold 16,210 shares, representing a 24.67% decrease in their position, which might raise red flags about insider confidence in the company's future performance.

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