Amphenol Corp. (NYSE:APH) Presents a High Growth Momentum Breakout Opportunity

Amphenol Corp. (NYSE:APH) has appeared on a specialized screen made to find stocks that fit high growth momentum investing ideas while also showing a positive technical setup. This method uses strict fundamental and technical analysis, looking for companies showing solid earnings acceleration, positive estimate revisions, and growing profit margins, key features of the High Growth Momentum (HGM) Rating, while also trading in a way that suggests a potential breakout is near, as shown by high Technical and Setup Ratings. This two-part method tries to find stocks with both the fundamental engine for continued growth and the technical position for near-term price gains.

High Growth Momentum Fundamentals

Amphenol is notable with a solid HGM Rating of 8, showing very good strength across several growth metrics important for momentum investors. The company is not just growing; it is speeding up, a main factor that divides steady performers from true momentum leaders.

• Very Good Quarterly Growth: The latest quarter showed strong year-over-year growth, with EPS rising 84.1% and Sales going up 56.5%. This continues a pattern of acceleration from earlier quarters.
• Solid Annual Performance: Over the trailing twelve months (TTM), EPS growth is a notable 51.8%, while revenue growth is more than 40%. This shows the good quarterly performance is adding to sustained annual expansion.
• Positive Surprises and Revisions: Amphenol has exceeded analyst EPS estimates in each of the last four quarters, with an average surprise of 15.1%. Also, analysts have changed their estimates upward over the past three months, increasing the next year's EPS projections by more than 14%. This mix of beating expectations and rising future estimates is a strong driver for momentum.
• Growing Profitability: The company's profit margin in the last quarter was 19.3%, a notable expansion compared to the 15.3% margin from the quarter before. This shows an ability to convert top-line growth efficiently to the bottom line, a highly valued characteristic.

Technical Strength and Market Position

From a technical view, Amphenol's health is very good. The stock gets a perfect Technical Rating of 10, indicating very good strength compared to the broader market. A detailed technical analysis report for APH is available here.

• Strong Uptrend: Both the short-term and long-term trends are firmly positive, a very positive sign. The stock is trading well above its key moving averages (20-day, 50-day, 100-day, and 200-day), which are all going up, confirming the strength of the trend.
• Market Outperformance: Over the past year, APH has done better than 92% of all stocks in the market and is in the top group of its industry peers. It is currently trading near its 52-week high, matching the overall market strength but showing better relative performance.
• Solid Support Structure: The analysis finds several clear support zones below the current price, the closest being in the $117.82 - $118.22 range. These areas, made by a combination of moving averages and trendlines, give a clear structure for risk management.

Quality Setup for a Potential Entry

Beyond its strong trend, Amphenol shows a positive setup pattern, getting a Setup Rating of 7. This shows the stock is pausing after its recent advance, possibly giving a strategic entry point.

• Pause Within an Uptrend: The stock has been trading in a range between about $105 and $126 over the past month and is currently moving back from the high end of this range. This kind of orderly stop after a strong move often comes before the next step up.
• Clear Risk Parameters: The nearness of the set support zone around $118 allows for a well-defined exit point if the expected breakout does not happen. This creates a positive risk-reward situation for traders.
• Low Overhead Resistance: With the stock near new highs, there is very little price-based resistance above the current level, which could allow for a clear path upward if buying pressure returns.

Conclusion

Amphenol Corp. presents a positive case for investors following a high growth momentum strategy. The company's fundamental profile is marked by accelerating earnings, major revenue expansion, and improving profitability, all supported by positive earnings surprises and upward analyst revisions. This solid growth story is matched by a technically very good chart showing a strong uptrend and a current pause phase that may offer a positive entry point. The mix of a high HGM Rating, a top-level Technical Rating, and a good Setup Rating makes APH a stock worth further review for those looking for high-growth candidates with sound technical bases.

For investors interested in finding other stocks that meet these strict criteria, you can run the screen yourself to see the current results: Find High Growth Momentum Breakout Setups.

Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind. All data and analysis are based on publicly available information and should not be the sole basis for any investment decision. Always conduct your own research and consider consulting with a qualified financial advisor before making any investment.