AMETEK Rallies 5.1% on Record $2.2B Orders, 23% Growth
HON•AMETEK shares jumped 5.1% this week versus a 1.4% S&P 500 gain after first-quarter orders hit a record $2.2 billion, up 23% year-over-year, and backlog rose to $3.87 billion. The stock trades at a 35.6 price-earnings ratio with a 0.67 correlation to the S&P 500, capturing 92% of up-market moves.
1. Stock Performance And Market Overlap
AMETEK stock climbed 5.1% over the past week while the S&P 500 rose 1.4%, reflecting strong investor enthusiasm following fresh guidance and order growth. With a five-year correlation of 0.67 to the index, the stock captures about 92% of market up days and absorbs 80% of down days, offering modest downside cushioning but limited distinct returns.
2. Record Orders And Backlog Growth
In the first quarter, AMETEK reported record orders of $2.2 billion, marking a 23% increase from last year, and organic orders up 22%. Demand was strongest in defense, power and semiconductor segments, pushing the backlog to an all-time high of $3.87 billion and underpinning raised full-year outlooks.
3. Valuation And Sustainability Risks
AMETEK’s operating margin of 25.9% comfortably exceeds the S&P 500 median of 18.4%, justifying a premium valuation with shares trading at a 35.6 P/E ratio. Key risks include tougher second-half comparisons and geopolitical uncertainty that could test the company’s ability to sustain its momentum.
