Amphenol (APH) shares have gained 27.6% year to date (YTD), outperforming the broader Zacks Computer & Technology sector's appreciation of 19.9% and the Zacks Electronics – Connectors industry's return of 27.3%. The momentum in APH shares can be attributed to its strong first-half 2024 results. Net sales grew 9% year over year organically and 15% at constant currency, driven by strong organic growth in key end markets, including IT datacom, commercial aerospace, automotive and defense markets, and moderate ...

PleasureofartIntroduction After an impressive rally since the August stock market bottom, volatility is back, led by the decline in Nvidia's (NVDA) market cap. On Tuesday, September 3, the tech giant lost close to $280 billion in market cap. Although a 10% decline (which is how much $280 billion was) is not much in light of its year-to-date performance of more than 140%, it made for some great financial headlines, as we can see below. Google NewsPersonally, I believe there are several reasons for the s ...

Electronic and fiber optic connector company Amphenol Corporation APH shares are trading lower after B of A Securities analyst Wamsi Mohan downgraded the stock from Buy to Neutral and lowered its price target from $80 to $71.The analyst says their checks indicate that design issues with NVIDIA Corporation’s GB200-based systems may lead to changes that could reduce Amphenol’s AI revenue opportunities.Specifically, adjustments to address system overheating might result in replacing Amphenol’s flyover cables w ...

champpixsQuality Stocks The SPDR S&P 500 Trust ETF (SPY) added 2.34% in August as it continues its excellent run this year. Vanguard's Dividend Appreciation Index Fund ETF Shares (VIG) posted a more impressive gain of 3.32%, outperforming SPY during the month for the second time this year. And my watchlist performed the best, positing a gain of 3.41%. Despite another strong return 2024 has not been a good year for my watchlist. Year-to-date, the watchlist is up only 3.47%, meanwhile VIG is up 15.64% and ...

A month has gone by since the last earnings report for Amphenol (APH) . Shares have added about 8.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Amphenol due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Amphenol’s Q2 Earnings Beat Estimates, Revenues Up Y/YAmph ...

We are in the last leg of the second-quarter earnings season, which so far remains strong. Looking at the second quarter as a whole, total earnings of the S&P 500 Index are expected to be up 9.4% from the same period last year on 5.4% higher revenues. If it materializes, this will be the highest quarterly earnings growth since the first quarter of 2022. Meanwhile, irrespective of the S&P 500 components, a majority of all listed companies have already reported financial results of their last completed quarte ...

Efficiency level measures a company’s capability to transform available input into output and is often considered an important parameter for gauging its potential to make profits. A company with a high efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance.However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider popular efficiency ratios while selecting stocks. These efficiency ra ...

Today we will be looking at hypergrowth stocks with the potential to 10X your investment. All but one of the stocks discussed below has achieved hypergrowth – growing by 40% or more – over the last 12 months. Each share is also priced at less than $100 with most shares well below $100.  I have chosen that price level because 10X growth is difficult if the share is priced above $100.None of the stocks discussed below trade for less than $10. Instead, these companies tend to be relatively well established and ...

Urupong Quality Stocks The SPDR S&P 500 Trust ETF (SPY) added 1.21% in July following a late rally in a very volatile month. Vanguard's Dividend Appreciation Index Fund ETF Shares (VIG) posted a more impressive gain of 3.97%, outperforming SPY during the month for the first time this year. And my watchlist performed the best of the three, positing a gain of 5.16%. Despite the strong return in July 2024 has not been a good year for my watchlist. Year-to-date, my watchlist is up a meager 0.06%, meanwhile VIG ...

Core Viewpoint - Amphenol Corporation has demonstrated exceptional performance with a 19% annual return over the past 20 years, positioning it as a leading compounder in the industrial sector [3][19]. Company Overview - Amphenol Corporation has a market capitalization of $47 billion and operates in various sectors including industrial, automotive, IT, defense, and mobile devices, with over 60% of sales generated outside North America [5][6]. - The company has a strong history of mergers and acquisitions, having acquired more than 50 companies in the last decade, which has contributed to its growth strategy [5][6]. Recent Performance - In the second quarter, Amphenol achieved record revenues of $3.61 billion, reflecting an 18% increase in U.S. dollars and an 11% organic growth rate [7][8]. - The operating income reached $769 million with an operating margin of 21.3%, a 90 basis points improvement from the previous year [7][8]. - The company generated $528 million in free cash flow, representing 95% of adjusted net income, and maintained a net debt of $4.1 billion with a net leverage ratio of 1.2x [9][8]. Shareholder Distributions - Amphenol currently pays a quarterly dividend of $0.165 per share, translating to a yield of 1.0%, with a five-year dividend CAGR of 13.6% [12][14]. - The company announced a 50% dividend increase during the 2Q24 earnings call, indicating a commitment to shareholder returns despite a low yield [12][14]. Future Growth & Valuation - The company recorded orders of $4.1 billion in the second quarter, indicating a book-to-bill ratio of 1.12x, suggesting strong future demand [15]. - Amphenol is pursuing additional acquisitions, including the purchase of CommScope's Outdoor Wireless Networks and Distributed Antenna Systems businesses for $2.1 billion, expected to enhance profitability [15][17]. - Analysts project Amphenol's EPS to grow by 17% this year, followed by 16% and 15% growth in the subsequent years [17]. Valuation Concerns - The stock is currently trading at a blended P/E ratio of 38.4x, significantly above its 10-year normalized P/E ratio of approximately 27x, indicating that much of the growth is already priced in [18][21]. - Despite the high valuation, the company is viewed as a strong long-term investment opportunity due to its robust business model and growth prospects [19][20].