Amphenol Corporation (NYSE:APH) Combines Strong Growth with Bullish Chart Setup

Investors aiming to benefit from large price increases often use a method that combines solid business performance with good market timing. This method looks for firms with strong basic growth, shown by rising sales and profits, while also displaying helpful price charts that point to a possible upward move. The idea is simple: a firm with good growth potential supplies the basis for extended profits, while a positive chart situation can point to a good time to buy, as demand starts to exceed supply. This two-part review tries to find stocks where basic business health is being supported, or maybe even predicted, by the stock's price movement.

Amphenol Corporation (NYSE:APH) recently appeared from this kind of screening process. As a top designer and maker of electrical, electronic, and fiber optic connectors, Amphenol works in many different areas like industrial, automotive, aerospace, and data communications. This variety is a main positive quality, offering several paths for expansion as different industries use more advanced connection and sensor technologies. The company's basic and chart reports indicate it now offers a strong example for investors using this mixed growth-and-breakout method.

Basic Growth Review

Amphenol's basic business picture is built on high profitability and solid, speeding growth measures, which are main requirements for any growth stock choice. The company's basic analysis report gives it a high Growth score of 8 out of 10 and a top-level Profitability score of 9 out of 10.

The growth narrative is especially strong:

• Strong Recent Results: In the last year, Amphenol showed a 66.86% rise in Earnings Per Share (EPS) and a 47.37% increase in Revenue. This is not an isolated event but a speeding up of a firm long-term pattern.
• Maintainable Path: The company's average yearly EPS growth over recent years is a good 15.11%, and this speed is predicted to rise. Experts estimate future EPS growth averaging 18.70% each year, with Revenue growth predicted at close to 20%.
• High-Quality Profitability: This growth is very profitable. Amphenol has a sector-leading Operating Margin of 25.01% and a Return on Invested Capital (ROIC) of 19.87%, doing much better than most similar companies. A high ROIC shows the company is using its money effectively to create profits, a sign of a well-run growth business.

While the Valuation score seems average at 4/10 based on usual Price-to-Earnings measures, the analysis states that the stock's low PEG ratio—which includes its high growth rate—and its very good profitability support the higher price. The financial Health score of 6/10 indicates a firm balance sheet in general, though it mentions a rise in debt that should be watched.

Chart Situation and Breakout Chance

The basic business health is reflected in the stock's price movement. Amphenol's chart analysis report gives a high score of 9 out of 10, with a Setup score of 8, pointing to a positive pattern for possible continued upward movement.

Main chart points include:

• Strong Market Performance: The stock is in a clear long-term upward trend and has done much better than the wider market, outperforming 93% of all stocks over the past year. It now trades close to its 52-week high, a signal of continued momentum.
• Tight Trading Near Highs: Lately, the price has been moving in a narrow band between about $125 and $143. This kind of activity after a big rise can set the stage for the next upward step.
• Breakout Indicator: The chart situation points to very little supply just above the present price, with a main horizontal supply level around $140.91. A clear move above this area could indicate a breakout, supporting the positive consolidation. The report also mentions a recent "Pocket Pivot" signal, a volume-based sign suggesting buying by large investors.

This chart position is important for the method. It changes the review from just finding a strong company to finding a strong company whose stock is not stalled but is instead showing momentum and a pattern that often comes before more gains. The mix suggests market players are acknowledging the basic business story.

Why The Mixed Requirements Are Important

This joined method reduces main risks in growth investing. Concentrating only on high growth rates can result in buying expensive stocks that have already had their big price gains, or buying into a "narrative" the market is not following. On the other hand, following chart breakouts without a basic business foundation is like building on weak ground—the move may not last if the company's business momentum slows.

By needing both, the method looks for companies where:

1. The basic engine (sales, profits, profitability) is strong and speeding up.
2. The market's price movement supports that this health is being seen and is likely to keep being valued.

Amphenol Corporation seems to match this idea. Its strong recent growth, better profitability, and leading position in important connection markets give a firm basic foundation. On the chart, its long-term upward trend, market-beating results, and present tight trading near highs show a price pattern that often ends with the trend continuing.

For investors wanting to review other stocks that meet this mix of strong growth basics and positive chart situations, more results can be located using this Strong Growth Stocks with Good Technical Setup Ratings screen.

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Disclaimer: This article is for information only and is not financial advice, a suggestion, or an offer to buy or sell any securities. The analysis uses data and reports from other sources. Investors should do their own complete research and think about their personal money situation and risk comfort before making any investment choices. Past results do not guarantee future outcomes.