AMTEK, Inc. (AME) Buy or Sell Stock Guide

Last updated: Jan 08, '18

The analysis below may be helpful to you if you have any of the following questions about AME stock:

  • Is AME a buy or a sell?
  • Should I sell or hold AME stock today?
  • Is AME a good buy / a good investment?
  • What are AME analyst opinions, recommendations, ratings?

Here are AME stock buy reasons/signals:

1. Ametek has a healthy pipeline of acquisition candidates that fit its differentiated product strategy, supporting a long runway for growth.

2. Depreciating foreign currencies may open up interesting acquisition opportunities for Ametek in fast-growing international markets.

3. Despite being a highly acquisitive firm, Ametek has generously returned cash to shareholders through share buybacks and dividends.

4. AME quarterly revenue growth was 14.80%, higher than the industry and sector average revenue growth (6.28% and 6.15%, respectively).

5. AME average analyst rating is Strong Buy.

Here are AME stock sell reasons/signals:

1. About half of serial acquirer Ametek's assets on its balance sheet are intangibles and goodwill. In the event that the acquired businesses fail to perform, impairments could substantially hit financial results.

2. With over 50% of Ametek's revenue generated internationally, currency translation could be a significant near-term headwind.

3. Competition from low-cost copycats always remains a risk to Ametek's differentiated product portfolio.

4. AME stock price ($74.22) is at the 52-week high. Perhaps now is a good time to sell?

5. AME profitability is declining. The YoY profit margin change was -1.53pp.

6. AME Price/Sales ratio is 4.06, and it’s high compared to its industry peers’ P/S ratios.

7. AME PEG ratio (P/E adjusted for growth) is 3.02, and it’s high compared to its industry peers’ PEG ratios.

8. AME average analyst price target ($73.31) is below its current price ($74.22).

What are your thoughts on AME?

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