Helping Self-Directed Investors Succeed Blog - One Mid Cap Electrical Equipment Company to Watch as of March 22nd, 2019

One Mid Cap Electrical Equipment Company to Watch as of March 22nd, 2019

March 22nd, 2019

In a surprising turn of events, this Friday's market action was decidedly negative. Clearly, investors were locking profits on gains earned over the past three months when US equities established a near-term bottom post-Christmas Eve 2018. Despite this, the S&P 500 Tracking ETF - SPY is up +11.74% year-to-date. The Nasdaq 100 Tracking ETF - QQQ has risen +15.75% for the year.

US Economic data has been mixed in recent weeks. As investors pivot to the 1st quarter earnings reports, they are realizing growth projections for earnings appear to be not as robust as was seen over the past few years. Many stocks are unable to move past consolidation areas.

In this milieu, we found AME - Ametek Inc. to be an interesting stock to watch. The stock's price action has been tight over these past few months. After dipping to a low of $63.03 in the December 2018 correction, the stock has gained nearly +26% over this timeframe. Company manufactures various electrical related fabrication items including Uninterrupted Power Supply systems, battery chargers for a variety of industries.

The company's core fundamentals appear to be respectable. Earnings expectations for the upcoming quarter look healthy. An earnings date has not been announced yet. Dividend yield is less than 1% and the company has announced in February 2019 a stock buyback program.

The broader Mid Cap and Small Cap indexes are not in a dominant position at this time and that's an important risk self-directed investors must recognize, especially with an economic slowdown factor in play as of now.

Nevertheless, self-directed investors will want to perform more research on this stock to see how appropriate this is for their own portfolios.

Good Luck and Happy Investing!

Sharp E-Newsletter for the Savvy Self-Directed Investor

Home    Disclaimer    Philosophy    Contact