AME Stock Analysis — Ametek
Sector: Industrials
AI Verdict
Ametek trades at a premium to the sector at 27.7x next year’s earnings, but if its high switching cost moat keeps driving 26.5% EPS growth, the price is fair for the reliability on offer.
Competitive Moat
Ametek manufactures precision electronic instruments and electromechanical devices for niche industrial and aerospace applications, where reliability and regulatory certifications create high switching costs. Its defensible position comes from deep integration into customer workflows and a broad portfolio of mission-critical components.
Summary
Ametek is notable right now for its 26.5% forward EPS growth forecast paired with a cooling RSI of 49.8.
Where It Stands
AME is up 27.78% over the past year, trades at 27.7x next year’s earnings (vs. the industrials median of 20x), and its RSI of 49.8 signals a neutral, non-overbought setup.
Key Metrics
- RSI: 49.8 — Neutral
- Trailing P/E: 35.0x
- Forward P/E: 27.7x
- PEG Ratio: 1.26
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Market Cap: $53.1B
- Dividend Yield: 0.01%
- 1-Year Return: 27.78%
- 52-Week High: $244.71
- 52-Week Low: $174.43
Analyst Consensus
18 Buy · 7 Hold · 0 Sell (25 analysts)
Bull Case
You’re paying 27.7x forward earnings for 26.5% expected EPS growth, which is a fair price for the growth on offer given the company’s 1-year return of 27.78%.
Bear Case
If the forward P/E compresses to the industrials median of 20x, the stock could lose about 28% from current multiples even if earnings deliver as expected.
Catalyst to Watch
Watch for quarterly earnings beats or guidance raises — upside surprises could justify the above-average P/E.