Unlocking the high Growth Potential of AMPHENOL CORP-CL A (NYSE:APH).

Our stockscreener has identified a possible breakout setup on AMPHENOL CORP-CL A (NYSE:APH). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:APH for potential opportunities.

In-Depth Technical Analysis of APH

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 10 out of 10 to APH. Both in the recent history as in the last year, APH has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, APH did better than 91% of all other stocks. We also observe that the gains produced by APH over the past year are nicely spread over this period.
• APH is part of the Electronic Equipment, Instruments & Components industry. There are 125 other stocks in this industry. APH outperforms 79% of them.
• APH is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• In the last month APH has a been trading in the 62.55 - 81.82 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of APH

How do we evaluate the setup for APH?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, APH has a 7 as its setup rating:

Besides having an excellent technical rating, APH also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 80.87, a Stop Loss order could be placed below this zone.

Some of the high growth metrics of APH highlighted

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. APH has achieved a 7 out of 10:

Explosive Earnings Growth

• In the most recent financial report, APH reported a 57.5% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• Accelerating EPS growth for APH: the current Q2Q growth of 57.5% exceeds the previous quarter Q2Q growth of 34.15%.
• Sales acceleration happened 3 quarters in a row.
• Over the past year, APH has demonstrated 35.9% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With impressive quarter-to-quarter (Q2Q) revenue growth of 47.74%, APH showcases its ability to generate increased sales and revenue. This growth indicates the company's strong customer demand and its effective business strategies.
• The sales growth of APH is accelerating: the current Q2Q growth of 47.74% is above the previous quarter Q2Q growth of 29.76%. Sales momentum and acceleration are key for high growth systems.
• Sales growth accelerated for 3 quarters in a row.
• The 1-year revenue growth of APH (30.7%) has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and expand its market share.
• Over the past 3 months, analysts have adjusted their EPS Estimate for APH with a 19.75% change. This highlights the evolving outlook on the company's EPS potential.
• APH has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.

Profitability & Financial Strength

• APH has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• With a favorable trend in its profit margin over the past year, APH demonstrates its ability to enhance profitability through efficient operations.
• APH showcases a robust Return on Equity (ROE) of 25.37%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• With a Debt/Equity ratio of 0.66, APH maintains a solid financial position with controlled leverage.

Market Strength

• APH has achieved an impressive Relative Strength (RS) rating of 91.15, showcasing its ability to outperform the broader market.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.