Berwyn, Pennsylvania-based AMETEK, Inc. (AME) manufactures and sells electronic instruments and electromechanical devices. It operates through the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG) segments. With a market cap of $41.7 billion, AMETEK operations span the Americas, Asia, Europe, and internationally.

The industrial giant has notably underperformed the broader market over the past year. AME stock has gained 6.4% over the past 52 weeks and dipped 50 bps on a YTD basis, compared to the S&P 500 Index’s ($SPX) 12.3% gains over the past year and a marginal 19 bps uptick in 2025.

Zooming in further, AMETEK has also underperformed the Industrial Select Sector SPDR Fund’s (XLI) 12.4% surge over the past 52 weeks and 6.7% returns in 2025.

AMETEK’s stock prices dipped 1.4% after the release of its mixed Q1 results on May 1. The company’s net sales for the quarter dropped by a marginal 24 bps compared to the year-ago quarter to $1.7 billion, missing the Street’s expectations by a small margin and unsettling investor confidence.

However, the company delivered high single-digit growth in orders, notable margin expansion and improvement in cash flows. AMETEK’s free cash flow for the quarter increased 3.1% year-over-year to $394.5 million. Meanwhile, its adjusted operating margin expanded 60 bps compared to the year-ago quarter to 26.3%, leading to a modest 1.9% year-over-year increase in adjusted operating income to $454.8 million. Moreover, its adjusted EPS grew 6.7% year-over-year to $1.75, exceeding analysts’ projections by 3.6%. Following the initial dip, AME stock rebounded 1.7% in the next trading session.

For fiscal 2025, ending in December, analysts expect AME to deliver a 4.1% year-over-year growth in adjusted EPS to $7.11. Moreover, the company has a promising earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.

The stock holds a consensus “Moderate Buy” rating overall. Of the 15 analysts covering the stock, opinions include 10 “Strong Buys,” one “Moderate Buy,” three “Holds,” and one “Strong Sell.”

This configuration has been mostly stable in recent months.

On May 7, Baird analyst Richard Eastman reiterated a “Neutral” rating on AME, but reduced the price target from $197 to $190.

As of writing, AME’s mean price target of $193.54 represents a modest 7.9% premium to current price levels, while the street-high target of $225 suggests a staggering 25.4% upside potential.