For investors looking to join solid fundamental growth with well-timed technical entry points, a multi-layered screening method can be especially effective. One useful technique uses filters to find stocks that display three main traits: a high growth momentum profile, sound technical condition, and a favorable price formation. This process tries to find companies that are both seeing quickening business fundamentals and are in a verified uptrend, while also trading in a pattern that hints a possible price rise is approaching. By stacking these quantitative scores, investors can methodically reduce the list to choices that fit both growth and momentum approaches.
AMPHENOL CORP-CL A (NYSE:APH) appears as a leading case from this kind of screen, illustrating why it deserves notice from growth-focused investors. The company, a worldwide top designer and maker of electrical, electronic, and fiber optic connectors, works in harsh environment, communications, and interconnect & sensor systems areas. Its parts are essential in many fields such as industrial, automotive, aerospace, and data communications, placing it within several lasting technology trends.
High Growth Momentum Fundamentals
Amphenol’s fundamental narrative is one of forceful and quickening growth, which is shown by its notable ChartMill High Growth Momentum Rating of 8 out of 10. This score combines parts of earnings and sales momentum, and an examination of the given data shows the reasons for the rating.
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Strong Earnings Growth: The company’s earnings per share (EPS) growth on a trailing twelve-month (TTM) basis is at a notable 66.9%. More significantly, this growth has been quickening on a quarterly year-over-year basis:
- Most Recent Quarter: 86.0%
- Previous Quarter: 84.1%
- Two Quarters Ago: 57.5%
- Three Quarters Ago: 34.1% This clear sequence of acceleration is a sign of solid momentum and a key part looked for by growth investors, as it points to rising business speed.
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Solid Sales Increase and Profitability: Revenue growth is equally strong, with TTM sales higher by 47.4%. Quarterly sales growth has also been sound and steady, at 53.4% in the latest period. Also, the company is not only increasing sales; it is becoming more profitable. The profit margin in the last quarter was 20.1%, showing growth from 19.3% the quarter earlier and a marked gain over the full-year margin of 15.9% from the previous fiscal year. Growing margins along with fast sales increase is a strong mix for final results.
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Estimate Changes and Surprises: The momentum is being seen and supported by analysts. The average estimate for next year’s EPS has been moved higher by 8.6% over the past three months. This matches a strong history of surpassing expectations; Amphenol has topped both EPS and revenue estimates in all of the past four quarters, with an average EPS surprise of 16.5%. Steady positive surprises frequently cause more upward estimate changes and can be a reason for continued stock price gains.
Technical Condition and Formation Quality
While sound fundamentals give the "why" for an investment, technical study can aid with the "when." Amphenol’s technical view is very strong, as described in its detailed technical report.
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Top Technical Condition: The stock receives a leading ChartMill Technical Rating of 10 out of 10. This rating shows notable strength across various time periods. Both its short-term and long-term trends are scored as positive, and it is doing better than 94% of all stocks in the market over the past year. It is also a frontrunner in its field, doing better than 83% of similar companies in the Electronic Equipment, Instruments & Components sector. The stock is trading close to its 52-week high, which is an indication of strength, particularly when paired with such high relative strength scores.
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Formation for a Possible Price Rise: Maybe most relevant for an investor searching for an entry point is the stock’s Setup Rating of 7. This signals the stock is in a time of consolidation after its strong rise. The price has been trading between about $130.62 and $157.54 over the past month and is presently near the top of that band. This kind of activity, after a strong uptrend, can be a pause that renews, letting the stock reduce any overbought state and form a base for its next possible upward move. The technical report states there is "very little resistance above the current price," indicating a price rise could meet little obstruction.
A Merging Chance
Amphenol Corp. presents a strong case where fundamental momentum and technical position merge. The company is showing quickening earnings and sales growth, growing profitability, and regularly beating expectations—all main standards for high-growth momentum plans. At the same time, its stock is in a verified, strong uptrend and is now consolidating in a way that gives a clear technical formation. This mix answers the central questions for an investor: the fundamental strength supports the investment idea, and the technical formation gives a structure for handling entry and risk.
Find Other Possible Formations This study of Amphenol came from a specific screen for high-growth momentum stocks with positive technical formations. Investors curious about finding other companies that match similar strict standards can review the High Growth Momentum Breakout Setups Screen for an updated list of possible choices.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The analysis is based on data provided and reflects conditions at a specific point in time. Investing involves risk, including the potential loss of principal. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment decisions.
