Amphenol Corp (NYSE:APH) Stands Out as a Strong Growth Candidate Under Navellier's Strategy

A growth investing strategy outlined in Louis Navellier's "The Little Book That Makes You Rich" uses a methodical process for finding companies with solid and quickening financial results. The system concentrates on eight main rules intended to identify stocks with excellent growth features, highlighting favorable earnings adjustments, solid sales and profit increases, widening profitability, and high returns on equity. This structured filtering method assists investors in finding companies that are not just increasing quickly but are also enhancing their operational effectiveness and financial condition.

AMPHENOL CORP-CL A (NYSE:APH) appears as a noteworthy candidate when assessed using Navellier's growth standards. The Connecticut-based manufacturer of electronic connectors and sensor systems shows several traits that match the strategy's needs for excellent growth stocks.

Earnings Revisions and Surprises

The filtering system gives considerable importance to analyst sentiment and earnings results, as upward adjustments and regular beats frequently point to fundamental business health that might not be completely represented in current prices.

• Next quarter EPS estimates have been adjusted upward by 14.98% over the past three months
• The company has reported four straight positive earnings surprises
• Average earnings surprise over the last four quarters is 16.51%

These numbers imply analysts are becoming more positive about Amphenol's short-term outlook, while the company has regularly surpassed forecasts, a trend that frequently results in additional estimate changes and possible price gains.

Sales and Earnings Growth

Quickening revenue and profits form the center of any growth investment thesis, showing both market need for products and the company's capacity to turn sales into earnings.

• Quarterly sales growth year-over-year hit 53.37%
• Annual revenue growth is 47.37%
• Quarterly EPS growth jumped 86.00% compared to the same quarter last year
• Annual EPS growth hit 66.86%

These significant growth levels show Amphenol's solid position in its markets and its capacity to benefit from demand for electronic parts across industrial, automotive, aerospace, and communications industries.

Profitability and Cash Flow Expansion

The strategy looks for companies that are not only increasing sales but are also becoming more profitable and producing greater amounts of cash, important signs of sustainable business model quality.

• Operating margin widened by 15.93% over the past year
• Free cash flow increased 75.15% each year
• Return on equity is 30.52%

These numbers indicate Amphenol is effectively converting sales into profits and cash, while the high return on equity implies management is using shareholder capital efficiently to produce substantial returns.

Fundamental Assessment

A complete fundamental analysis of Amphenol shows a varied but mostly favorable picture. The company gets an overall rating of 7 out of 10, with especially high scores in profitability (9/10) and growth (8/10). The analysis points out outstanding returns on invested capital and widening profit margins that greatly exceed industry competitors.

While valuation metrics seem high with a P/E ratio of 46.54, this could be reasonable given the company's solid growth outlook and high profitability. The financial health rating of 6/10 shows some issues about increasing share count and rising debt levels, although the company keeps adequate solvency metrics and sufficient liquidity.

Earnings Momentum

The filtering system specifically searches for quickening earnings growth, which can indicate improving business conditions and often comes before more favorable estimate adjustments.

• Current quarterly EPS growth of 86.00% greatly exceeds the previous comparable quarter's growth of 28.21%

This quickening in earnings growth implies Amphenol's profitability is getting better at a faster rate, possibly indicating operational leverage or favorable market situations that could support continued solid performance.

For investors wanting to investigate more companies that meet the "Little Book" growth standards, the pre-configured screen gives a beginning point for more research. The screen can be modified based on personal risk tolerance and investment goals.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results.