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AMETEK, Inc. (AME)

AMETEK stock forecast: buy or sell

Close on Oct 23rd, 2020
$107.76 +0.70%
3 months performance
16.60%
Published: October 23rd, 2020 - 6.19pm EDT

AMETEK stock outlook

  • AMETEK stock scarcely changed 0.7% to close at $107.76 on the stock market today.
  • AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices worldwide. It operates through two segments, Electronic Instruments (EIG) and Electromechanical (EMG).

Please read:
The thoughts contained in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this text does not have any knowledge of the individual positions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for informational purposes only

AMETEK stock charts

Should I buy AMETEK stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $AME stock a buy?

In the current situation of AMETEK there is just one buy setup eligible:

Uptrend buy setup

AMETEK stock is in an uptrend since last March that so far marked an amazing 97% gain. Price marked a local bottom in this uptrend at $94.90 in late September, and since then it bounced off a 13.55%. Price just broke out above the buy point at $103.76, but it can be traded. If price climbs beyond $108.95, you should not chase the price and wait for the next entry point. If you decide to enter this trade, the suggested stop loss is at $93.38

Buy setupBuy pointStop lossRisk
Uptrend buy setup$103.76$93.3810%

Should I sell AMETEK stock?

Do you know when is it time to sell AMETEK?. Trading strategies allow us to avoid impulsive decisions based on our personal moods or the buzz that surrounds the market. When selling, as well as buying, detailed strategies are very easy to use and are only valid for selling stocks in your porfolio, not for selling short $AME stock

A golden rule is that you should never hold a trade that produces higher than expected losses upon the buy. The timing to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell AMETEK stock?

In the current situation of AMETEK there is not any eligible sell setup, so AMETEK stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell AMETEK stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 2 ratings were published for AMETEK. General sentiment is bullish, with 2 out of 2 posting optimistic forecasts

AMETEK ratings

Brokerage firmRating
Oct 13th, 2020
Morgan Stanley Buy
Oct 14th, 2020
KeyCorp Buy

Technical analysis

AMETEK shares started an uptrend last March, and gained a gorgeous 97.33%. During this uptrend, the price offered some entry points on the breakouts. Latest pullback was in late September, when price bounced at $94.90. On October 6, AMETEK broke out above its last top ($103.76) offering a good buy point

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

AME SMAs chart

Supports and resistances

Investors use support and resistance levels as a way to spot price points on a chart that may behave as glass ceiling, preventing the price of shares to move in certain direction. A support level is a level where the price may stop as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it is likely to continue falling until meeting another support level. On the contrary, resistance levels are where the price may find a curb as it rises. Again, the price is more likely to "rebound" at this level, and if it finally breaches this level, it will rise more easily until it finds the next resistance

Price is at all-time highs and there are not upper resistance levels.

The current support levels are:

  • S1: $103.76 (-3.71% below)
  • S2: $101.69 (-5.63% below)
  • S3: $101.38 (-5.92% below)
  • Bollinger bands

    This is an indicator that was developed in the 1980s by John Bollinger. Fundamentally, the Bollinger Bands are bands that flow around a centralmoving average, varying the distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    AME RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to chart the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves in a range between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    The RSI dropped below the overbought level of 70 on Monday after just crossing to the overbough zone for 1 day (weak signal). The RSI reading today was 60.38. AMETEK shares fell a 1.9% since that level was lost

    AME RSI chart

    Earnings and financials

    FQ2 financial event was hosted by AMETEK ($AME) in early August after presenting the earnings report. AMETEK surpassed consensus earnings estimates and posted an earnings a share of $0.84, that is a 16.67% improvement versus the predictions of $0.72.

    This compares to earnings of $1.05 per share same quarter last year, so posted EPS is a reduction of -20%.

    AMETEK ($AME) will host the Q3 earnings call on Thursday next week. Market analysts analysts forecast a per-share earnings of $0.93, that is a 10.71% higher than Q2.

    AME revenues and profits chart