Amphenol Corporation (NYSE:APH) Combines High Growth Momentum with Bullish Technical Setup

For investors looking to join solid fundamental growth with well-timed technical entry points, a multi-factor screening method can be a useful instrument. One practical tactic focuses on finding companies that show forceful earnings momentum and quickening growth, signs of the high-growth momentum style, while also displaying helpful price patterns that indicate a possible breakout. This process sorts for stocks with a high ChartMill High Growth Momentum (HGM) Rating to find fundamental force, a high Technical (TA) Rating to verify a good uptrend, and a high Setup Rating to find times of pause that might come before the next move up. This combination of elements tries to address two key questions: which stock has the fundamental driver to push price gains, and when could be a good time to think about an entry.

Amphenol Corporation (NYSE:APH) appears as a notable candidate from this kind of screen, with an HGM Rating of 8, a complete TA Rating of 10, and a Setup Rating of 8. This group of three signals the company is operating very well from a business view and is also trading with a technically good pattern inside a helpful wider market, where both the long and short-term trends for the S&P 500 are good.

Fundamental Growth Momentum in View

The High Growth Momentum Rating of 8 for Amphenol comes from outstanding recent financial results across important measures that growth investors value. The rating brings together data on growth, quickening, profit, and analyst view, and APH's numbers show a company in a strong upward move.

• Forceful Earnings Growth: The company's earnings per share (EPS) growth on a trailing twelve-month (TTM) basis is at a notable 66.9%. More important, the quarterly momentum is strong, with the latest quarter showing year-over-year EPS growth of 86%. This comes after earlier quarters of 84.1%, 57.5%, and 34.1% growth, showing a clear pattern of quickening in profit increase.
• Forceful and Quickening Sales: Revenue growth is similarly solid, with TTM sales up 47.4%. Quarterly sales growth has also quickened, going from 29.8% three quarters ago to 53.4% in the last reported quarter. This top-line force confirms need for Amphenol's interconnect and sensor products across its different end markets.
• Profit Margin Increase and Positive Surprises: A main part of lasting growth is growing profit. Amphenol's profit margin in the last quarter was 20.1%, up in order from 19.3% and much higher than the 15.9% margin reported for the last full year. Also, the company has regularly done better than analyst guesses, beating EPS estimates by an average of 16.5% over the last four quarters.
• Analyst Trust: The positive momentum is seen in analyst changes, with the average guess for next year's EPS being moved upward by 8.3% over the last three months. This forward-looking positive view is a key part in the HGM Rating, as it hints the growth story is getting more notice.

Technical Force and Setup Grade

While forceful fundamentals give the "why" for a stock's possibility, technical study helps with the "when." Amphenol's technical report shows a stock in a leading position. The complete TA Rating of 10 is given to stocks showing better relative force and kept uptrends across many time frames.

• Leading Trend: The report states that both the long and short-term trends for APH are positive. The stock's price is above all main moving averages (20, 50, 100, and 200-day), and these averages are themselves in rising patterns, a standard sign of a good trend.
• Market Better Performance: APH's relative force is a clear feature; it has done better than 94% of all stocks over the past year and does better than 86% of its group in the Electronic Equipment, Instruments & Components industry. It is now trading near its 52-week high, confirming its leading position.
• Pause and Setup: The high Setup Rating of 8 signals the stock has been pausing its recent gains, trading in a range between about $127 and $144 over the past month. This drop in movement after a strong rise often prepares for a new breakout. The technical study finds a clear support area between $130.35 and $132.89, giving a logical zone for a stop-loss order, while near-term resistance sits just above the current price at $143.86. The report also notes a recent "Pocket Pivot" signal, a volume-based sign often linked with institutional buying during a pause phase.

A Coming Together Chance

For the high-growth momentum investor, Amphenol shows a situation where fundamental catalysts and technical position meet. The HGM Rating confirms the company's forceful earnings and sales quickening, growing margins, and positive analyst view, the central drivers that can maintain a long-term uptrend. At the same time, the excellent TA and Setup Ratings signal this fundamental force is being seen by the market, with the stock's price action showing leadership and now forming in a pause pattern that may give a clear-risk entry point.

This mix is exactly what the screening method tries to find: fundamentally forceful companies that are not just going up, but are doing so with a technically sound manner, giving possible entry points after a time of rest.

Interested in finding other stocks that fit these needs of high growth momentum and good technical setups? You can view the full screen and its present results here.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. The analysis presented is based on data provided and should not be the sole basis for any investment decision. Investors should conduct their own thorough research and consider their individual financial circumstances and risk tolerance before making any investment. Past performance is not indicative of future results.