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

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 higher today making it today's featured industrial winner. The industry as a whole closed the day down 1.3%. By the end of trading, Ametek rose 69 cents (2%) to $34.64 on average volume. Throughout the day, 1.6 million shares of Ametek exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in a price between $32.67-$34.70 after having opened the day at $33.64 as compared to the previous trading day's close of $33.95. Other companies within the Industrial industry that increased today were: Highpower International ( HPJ), up 5.2%, THT Heat Transfer Technology ( THTI), up 3.9%, OSI Systems ( OSIS), up 3.6%, and Proto Labs ( PRLB), up 3.5%.
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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 $8.26 billion and is part of the industrial goods sector. The company has a P/E ratio of 19.6, below the average industrial industry P/E ratio of 21.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 21% year to date as of the close of trading on Monday. Currently there are eight analysts that rate Ametek a buy, no analysts rate it a sell, and five 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 negative front, A123 Systems ( AONE), down 14.7%, China Valves Technology ( CVVT), down 10.9%, Wowjoint Holdings ( BWOW), down 9.6%, and Twin Disc ( TWIN), down 8.4%, were all laggards within the industrial industry with Precision Castparts ( PCP) being today's industrial industry laggard.

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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