Ametek Inc. (AME): Today's Featured Industrial Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Ametek ( AME) pushed the Industrial industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Ametek fell 72 cents (-2%) to $34.73 on heavy volume. Throughout the day, 2.5 million shares of Ametek exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $34.39-$35.50 after having opened the day at $35.47 as compared to the previous trading day's close of $35.45. Other companies within the Industrial industry that declined today were: NACCO Industries ( NC), down 65.3%, China Valves Technology ( CVVT), down 49.5%, Tyco International ( TYC), down 49.3%, and Highpower International ( HPJ), down 5.7%.
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AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices in North America, Europe, Asia, and South America. The company operates in two segments, Electronic Instruments Group and Electromechanical Group. Ametek has a market cap of $8.68 billion and is part of the industrial goods sector. The company has a P/E ratio of 20.6, below the average industrial industry P/E ratio of 22.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 26.3% year to date as of the close of trading on Friday. Currently there are eight analysts that rate Ametek a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Ametek as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Ceradyne ( CRDN), up 43.1%, Ballard Power Systems ( BLDP), up 21.2%, THT Heat Transfer Technology ( THTI), up 20.4%, and A123 Systems ( AONE), up 20%, were all gainers within the industrial industry with Pall Corporation ( PLL) being today's featured industrial industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial industry could consider SPDR Dow Jones Industrial Average ( DIA) while those bearish on the industrial industry could consider ProShares UltraShort Industrials ( SIJ).

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