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Valued at $73.6 billion by market cap, Amphenol Corporation (APH) primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors. Based in Wallingford, Connecticut, the company serves various industries, including automotive, broadband communications, commercial aerospace, defense, IT and data communications, mobile devices, and mobile networks.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Amphenol fits this criterion perfectly. The company is renowned for its high-speed, power, and fiber optic technologies. Its manufacturing facilities are generally vertically integrated operations from the initial design stage through final design and manufacturing.
Shares of APH are trading 15.6% below their 52-week high of $70.84, which they hit on Jun. 20. APH has declined 7.5% over the past three months, lagging behind the Technology Select Sector SPDR Fund’s (XLK) 3.2% decline over the same time frame.
In the longer term, APH stock is up 24.3% on a YTD basis, outperforming XLK’s 8.6% gains. Moreover, shares of APH have rallied 40.1% over the past 52 weeks, surpassing XLK’s 18.2% returns over the same time frame.
APH has been trading above its 200-day moving average since November last year but has remained below its 50-day moving average since late August.
Over the past year, APH has primarily benefited from its diversified end markets, long-term track record of successfully integrating acquisitions, and sequential improvement of its book-to-build ratio.
However, the stock fell 6.4% following its Q2 earnings release on Jul. 24, despite its adjusted earnings of $0.43 per share beating Wall Street estimates of $0.41 per share. The company’s revenue of $3.61 billion also surpassed the estimate of $3.37 billion. The decline in stock price can be attributed to the sector-wide sell-off on Jul. 24.
APH has also outperformed its rival, TE Connectivity Ltd. (TEL). TEL has gained 10.8% over the past 52 weeks and 5.1% YTD.
As APH has outperformed the broader market over the past year, analysts remain optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 15 analysts in coverage, and the mean price target of $73.93 suggests a premium of 20.6% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
