Is AMETEK, Inc. (NYSE:AME) Fairly Valued?

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward. Analysts use common formulas and ratios to accomplish this. Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  AMETEK, Inc. (NYSE:AME)’s  PEG is 5.11.

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Shareholders can expect a return on equity of 18.40% as this is what the number currently stands at for the shares.  Calculated by dividing AMETEK, Inc.’s annual earnings by its total assets, investors will note a return on assets of 9.50%.  Finally, AMETEK, Inc.’s return on investment stands at 12.40% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 1.6 for AMETEK, Inc. (NYSE:AME).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.

AMETEK, Inc. (NYSE:AME)’s RSI (Relative Strength Index) is 65.97. RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

Currently, the 14-day ADX for AMETEK, Inc. (NYSE:AME) is sitting at 18.44. In general, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.

Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, AMETEK, Inc. (NYSE:AME)’s Williams Percent Range or 14 day Williams %R is resting at -37.18. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.

When performing stock analysis, investors and traders may opt to view technical levels. AMETEK, Inc. (NYSE:AME) presently has a 14-day Commodity Channel Index (CCI) of 166.44. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory.

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, AMETEK, Inc. (NYSE:AME)’s stock was 35.38%.  Over the last week of the month, it was 2.84%, 5.95% over the last quarter, and  4.92% for the past six months. 

Checking in on moving averages, the 200-day is at 84.62, the 50-day is 88.38, and the 7-day is sitting at 90.44. Moving averages may be used by investors and traders to shed some light on trading patterns for a specific stock. Moving averages can be used to help smooth information in order to provide a clearer picture of what is going on with the stock. Technical stock analysts may use a combination of different time periods in order to figure out the history of the equity and where it may be headed in the future. MA’s can be calculated for any time period, but two very popular time frames are the 50-day and 200-day moving averages.

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