The Zacks Electronics – Testing Equipment industry has faced significant challenges, including a sluggish automotive sector and geopolitical tensions. Despite this, key players like AMETEK (AME) and Fortive (FTV) are capitalizing on growth opportunities related to 5G technology and automation. AMETEK reported a record backlog of $3.58 billion and anticipates a 6-9% year-over-year earnings increase for 2026. In comparison, Fortive aims for an 8.5% growth in adjusted earnings, supported by strong demand for maintenance software.
Over the past year, the industry has underperformed relative to the S&P 500, climbing 23.6% compared to the S&P’s 33.1% gain. Currently, the industry trades at a forward P/E ratio of 26.17, exceeding both the S&P’s 22.10 and the sector’s 25.56. Looking ahead, analysts maintain a positive earnings outlook for the industry, with aggregate earnings estimates for 2026 showing a 6.5% increase since July 31, 2025.
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