AMPHENOL CORP-CL A (NYSE:APH) Shows Strong Growth Momentum and Bullish Technical Setup

A systematic method for finding high-growth momentum stocks uses several proprietary ratings to select for companies showing both solid fundamental growth traits and good technical positioning. This system uses ChartMill's High Growth Momentum Rating to find companies with increasing earnings and sales growth, widening profit margins, and positive analyst changes. These fundamental traits are then combined with good technical condition, as shown by the Technical Rating, and current price patterns that show possible entry points, as shown by the Setup Quality Rating. Stocks that rate well on all three measures represent interesting options for momentum investors looking for companies in solid uptrends with defined breakout possibilities.

Fundamental Growth Momentum

AMPHENOL CORP-CL A (NYSE:APH) gets a High Growth Momentum Rating of 8, showing very good condition across several growth areas important for momentum plans. The company shows strong and increasing earnings and sales growth, main parts of the momentum rating.

• Very Good Quarterly Growth: The latest quarter has year-over-year EPS growth of 86% and sales growth of 53.4%. This comes after strong previous quarters with EPS growth of 84.1%, 57.5%, and 34.1%, showing a clear pattern of growth.
• Solid Yearly Performance: Over the last twelve months, EPS has grown by 66.9% and revenue has increased by 47.4%, showing continued fundamental growth.
• Widening Profitability: The company's profit margin in the last quarter was 20.1%, up from 19.3% in the quarter before and much better than the 15.9% margin from the last full year. This margin growth is a key part of high-quality growth.
• Positive Surprises and Changes: APH has exceeded both EPS and revenue estimates in each of the last four quarters, with an average EPS surprise of 16.5%. Also, analysts have increased their next-year EPS estimates by more than 23% in the last three months, showing more belief in the company's future.

Technical Condition and Setup Quality

From a technical view, APH shows an equally interesting situation. The stock has a perfect Technical Rating of 10, showing very good technical condition compared to the wider market. A complete technical study is in the full ChartMill technical report.

• Strong Uptrend: Both the long-term and short-term trends are positive. The stock is trading near its 52-week high and has done better than 93% of all stocks over the past year.
• Solid Industry Position: In the competitive Electronic Equipment, Instruments & Components industry, APH performs better than 78% of its 123 peers.
• Good Moving Average Condition: The stock is trading above all its main moving averages (20, 50, 100, and 200-day), which are all rising, confirming the uptrend's strength.

Adding to its technical condition, APH has a Setup Rating of 8, showing the stock is now forming a good price pattern. The study finds a bull flag formation, which often happens as a short pause after a strong rise and can come before another upward move. A defined resistance area is seen just above the current price, and a move above this level could point to a new part of the trend. The report also notes important support levels below the current price, giving a logical area for placing stop-loss orders to handle risk.

Conclusion

AMPHENOL CORP-CL A is a clear example of a stock that fits a high-growth momentum plan. Its very good High Growth Momentum Rating of 8 is supported by increasing quarterly earnings, widening profit margins, and strong analyst belief. This solid fundamental story is joined with a perfect Technical Rating of 10, confirming a strong market-leading uptrend, and a high Setup Rating of 8, which points to a current price pattern that may offer a good risk/reward entry point. For investors using this multi-part filtering method, APH represents a candidate that successfully connects solid fundamental growth with technically good price action.

For investors looking for other options that meet these strict conditions, you can find more results by using the High Growth Momentum Breakout Setups screen.

Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind. The author has no position in any stock mentioned. All data and analysis are based on publicly available information and should be independently verified before making any investment decisions. Investing in stocks involves risk, including the potential loss of principal.