A solid investment method often blends both fundamental and technical analysis to find good opportunities. One specific effective plan involves looking for stocks that show good growth traits while also having positive technical breakout formations. This approach finds businesses with good financial bases and improving business speed, then adds technical signs to find good buying points. By concentrating on stocks with better growth numbers, good profit levels, and stable finances, while watching for technical confirmation through breakout formations, investors try to catch rising price moves pushed by both fundamental quality and market speed.
Fundamental Quality Review
Amphenol Corporation (NYSE:APH) shows a good fundamental picture that fits well with growth investment needs. The company's financial numbers display several positive points that growth investors usually look for:
- Outstanding Growth Path: Recent financial results display notable increase with revenue rising 47.37% over the last year and earnings per share going up by 66.86%. The company keeps a good past growth rate of 13.10% each year for revenue and 15.11% for EPS.
- Good Profit Numbers: The company gets a profitability score of 9/10, showing very good operational performance with an 18.22% profit margin and 24.64% operating margin, both much higher than industry standards.
- Acceptable Financial Condition: With a health score of 6/10, Amphenol keeps suitable cash availability and ability to pay debts, though investors should watch the growing debt amounts noted in the fundamental report.
These fundamental traits are important because growth investing depends on finding companies with improving business speed and lasting competitive edges. The company's detailed fundamental analysis shows a business set for ongoing growth, especially in its target areas including industrial, defense, automotive, and communications fields.
Technical Breakout Formation
The technical view for Amphenol matches its good fundamentals, showing what technical analysts would call a positive arrangement for possible continuation of the upward movement:
- Steady Movement Quality: Both near-term and long-term movements stay positive, with the stock trading close to its 52-week high of $142.50.
- Good Comparative Results: The stock does better than 93% of all market stocks and 76% of its industry group in the Electronic Equipment, Instruments & Components field.
- Defined Price Floors: Technical analysis finds several support areas, including an important zone between $121.69 and $125.17 made by a mix of trend lines and moving averages across different time periods.
The technical analysis report shows the stock has been moving sideways lately, with a drop that may offer a possible buying chance. The arrangement score of 7/10 indicates the technical formation matches the screening needs for breakout formations, especially with the small resistance above present price levels.
Growth Catalysts and Industry Standing
Amphenol's business plan centers on creating and making electronic connectors and sensor systems, parts needed across several increasing technology fields. The company works through three sections serving tough environment solutions, communications, and interconnect systems. This varied presence in technology infrastructure markets offers several growth paths, especially as automotive electrification, industrial automation, and communications infrastructure keep growing worldwide.
The company's fundamental growth score of 8/10 shows not just past results but also expected future growth, with analysts forecasting 18.70% yearly EPS growth and 14.42% revenue growth in coming years. This expected growth possibility, together with the company's set market position and technical knowledge, builds a base for continued performance that growth investors usually want.
Investment Points
While the combined fundamental and technical view seems positive, investors should think about several elements. The stock's value numbers show a high P/E ratio of 47.56, though this might be reasonable given the company's growth path and outstanding profitability. The small dividend yield of 0.72% matches common growth stocks that put profits back into the business rather than giving them to shareholders. The growing share count and rising debt-to-assets ratio noted in the fundamental report need watching, though these issues are partly balanced by good cash flow production and return numbers.
The present technical arrangement, with prices moving sideways after a strong upward move and clear support levels below, shows what technical analysts would call a possible chance for positions matching the current movement. The mix of improving fundamental growth and helpful technical formations creates the kind of situation that growth-focused technical plans often look for.
For investors looking for similar chances, more stocks meeting these needs can be found using this Strong Growth Stocks with Good Technical Setup Ratings screening tool.
Disclaimer: This analysis is for information only and does not make up investment guidance, suggestion, or backing of any security. Investors should do their own study and talk with a qualified financial advisor before making investment choices. Past results are not a guarantee of future outcomes.
