Investors are moving away from 'story stocks' and loss-making companies, turning their attention to profitable firms such as AMETEK, in a trend that reflects the wisdom of Peter Lynch's advice: 'Long shots almost never pay off.' This shift in strategy was reported today.
AMETEK has shown financial sustainability, with its earnings per share (EPS) growing at a rate of 13% per annum over the past three years. This positive trend is seen as an indicator of the company's future performance, with market efficiency likely to reflect this growth in the share price. Analysts are closely monitoring consensus forecasts for AMETEK's future EPS.
Despite being a large organization with a market capitalization of $34 billion, AMETEK has managed to maintain its EBIT margins while growing its revenue by 7.7% to $6.5 billion. The steady growth of both the company's bottom and top lines is seen as remarkable.
Insiders hold a significant stake in AMETEK, valued at $127 million, which accounts for 0.4% of the company. This substantial investment by insiders not only underscores profitability as a key component of success but also suggests a strong alignment between the interests of management and shareholders.
InvestingPro Insights
In line with the article's focus on AMETEK's profitability and growth, InvestingPro offers valuable real-time data and insights. According to InvestingPro, AMETEK yields a high return on invested capital and has consistently increased its earnings per share, supporting the article's mention of the company's EPS growth. Furthermore, the company has maintained its dividend payments for an impressive 53 consecutive years, indicating a stable financial position and rewarding shareholders for their investment.
InvestingPro also highlights that AMETEK operates with a high return on assets, further emphasizing the company's ability to generate profits. Additionally, it's worth noting that 8 analysts have revised their earnings upwards for the upcoming period, suggesting potential future growth.
For more comprehensive insights and tips, consider exploring the InvestingPro platform, where you'll find additional 7 tips related to AMETEK's financial performance and stock trading.
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