AMETEK, Inc.

(New York Stock Exchange)
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Somewhat Bullish +45

Billionaire Mario Gabelli Has Held AMETEK (AME) for Over a Decade. Is the Stock Still a Buy?

Activist investor Earnings report Guidance raised AI-generated analysis

πŸ“ˆ AMETEK ranks second on billionaire Mario Gabelli's list of top stocks to buy, with a $131.7 million stake held by GAMCO Investors as of Q2 2026.

πŸ“Š The company reported strong quarterly results with sales rising 15% and earnings per share increasing 17% to $2.09.

πŸ“¦ Orders surged 28% in the latest quarter, driving the order backlog to a record high level.

πŸš€ Management raised full-year earnings guidance despite projecting slower mid-to-high single-digit organic sales growth for the second half of the year.

πŸ’° Analyst consensus forecasts earnings per share growth of approximately 12.5% in 2026 and 14% in 2027.

πŸ“‰ The stock trades at a forward P/E of 29.7, which is more than 50% higher than the market's long-term earnings growth rate.

⚠️ Giverny Capital Asset Management exited its position in February at $232 per share due to concerns over the valuation gap.

🏭 AMETEK manufactures sensors, analytical instruments, and precision motors for aircraft, chip plants, data centers, and medical equipment.

πŸ’‘ The company possesses pricing power because its components are low-cost relative to the systems they protect, reducing customer switching risk.

🌐 Demand from key sectors like chips, data centers, and aerospace is cyclical, creating potential for demand drops in specific markets.

Bullish Signals
  • AMETEK ranks second on billionaire Mario Gabelli's list of top stocks to buy, with a $131.7 million stake held by GAMCO Investors as of Q2 2026.
  • The company reported strong quarterly results with sales rising 15% and earnings per share increasing 17% to $2.09.
  • Orders surged 28% in the latest quarter, driving the order backlog to a record high level.
  • Management raised full-year earnings guidance despite projecting slower mid-to-high single-digit organic sales growth for the second half of the year.
  • Analyst consensus forecasts earnings per share growth of approximately 12.5% in 2026 and 14% in 2027, outpacing the broader market's long-term 10% growth rate.
Risk Factors
  • The stock trades at a forward P/E of 29.7, which is more than 50% higher than the market's long-term earnings growth rate.
  • Giverny Capital Asset Management exited its position in February at $232 per share due to concerns over the valuation gap.
  • Demand from key sectors like chips, data centers, and aerospace is cyclical, creating potential for demand drops in specific markets.
Full Analysis
AMETEK (AME) ranks as the second-best stock in billionaire Mario Gabelli's GAMCO Investors portfolio, with a $131.7 million stake representing 1.18% of the fund at the end of Q2 2026. The company manufactures sensors, analytical instruments, power control devices, and precision motors for critical sectors including aircraft, chip plants, data centers, power grids, and medical equipment. Gabelli has held the position since Q4 2013, though the fund has trimmed its stake quarterly through late 2025. The latest quarter demonstrated strong performance with sales rising 15%, driven by 10% organic growth, while earnings per share increased 17% to $2.09. Order volume surged 28%, pushing the order backlog to a record high, which led management to raise full-year earnings guidance despite projecting slower mid-to-high single-digit organic sales growth for the second half of the year. Analysts project AMETEK's earnings per share will grow approximately 12.5% in 2026 and 14% in 2027, outpacing the broader market's long-term 10% growth rate. However, the stock currently trades at a forward P/E of 29.7, significantly higher than its five-year average of 25.6 and the market's 10% earnings growth baseline. The earnings yield is estimated at 3.4%, which is only marginally above the 2.9% real yield on 10-year inflation-protected Treasury bonds. Investors face a valuation concern as the stock already prices in years of strong growth, and demand from key customers in chips, data centers, and aerospace remains cyclical. Giverny Capital Asset Management exited its position in February at $232 per share citing a valuation gap, noting that while AMETEK offers small parts with big pricing power, the stock may offer less promise than certain AI-focused equities for delivering higher returns over shorter timeframes.