Core Viewpoint - Amphenol Corporation (APH) has shown significant stock performance, outperforming the broader market and specific sector ETFs over the past year, despite a recent dip in 2026. Group 1: Company Overview - Amphenol Corporation, headquartered in Wallingford, Connecticut, designs, manufactures, and markets electrical, electronic, and fiber optic connectors, with a market cap of $159.1 billion [1] - The company's products serve various industries, including telephone, wireless, data communications, cable television, and aerospace electronics [1] Group 2: Stock Performance - Over the past year, APH shares have gained 86.5%, significantly outperforming the S&P 500 Index, which has risen nearly 14% [2] - In 2026, APH stock is down 3.8%, while the S&P 500 has seen a marginal rise year-to-date [2] - Compared to the Technology Select Sector SPDR Fund (XLK), which gained about 19.6% over the past year, APH's performance remains strong [3] Group 3: Financial Results - In Q4, APH reported an adjusted EPS of $0.97, exceeding Wall Street expectations of $0.93, with revenue of $6.4 billion surpassing forecasts of $6.1 billion [6] - For Q1, APH anticipates adjusted EPS between $0.91 and $0.93, with revenue projected between $6.9 billion and $7 billion [6] Group 4: Earnings Expectations - Analysts project a 29.3% growth in APH's EPS for the current fiscal year, reaching $4.32 on a diluted basis [7] - The company has consistently beaten consensus estimates in the last four quarters [7] Group 5: Analyst Ratings - Among 17 analysts covering APH, the consensus rating is a "Strong Buy," with 14 "Strong Buy" ratings and three "Holds" [8] - The bullish sentiment has increased compared to the previous month, where 13 analysts suggested a "Strong Buy" [9] - Truist Financial Corporation analyst William Stein has reiterated a "Buy" rating with a price target of $182, indicating a potential 40% upside from current levels [9]

Core Viewpoint - Amphenol Corporation's shares experienced a significant decline of 11.09 percent despite reporting substantial year-over-year earnings growth in the fourth quarter [1][2]. Financial Performance - The company reported net earnings of $1.195 billion, or $0.93 per share, compared to $746.2 million, or $0.59 per share, in the same quarter last year, indicating a strong increase [2]. - On an adjusted basis, earnings rose to $1.254 billion, or $0.97 per share [2]. - Revenue increased by 49.2 percent year over year, reaching $6.439 billion, up from $4.317 billion in the prior-year quarter [2]. Stock Performance - Amphenol's stock opened at $141.00, down from a previous close of $166.25, and traded between $140.00 and $148.93 during the session [1]. - The trading volume was approximately 22.6 million shares, significantly higher than the average volume of around 8.2 million [1]. - The stock has traded within a 52-week range of $56.45 to $167.04 [2].

Core Insights - Fenimore Asset Management's Q4 2025 investor letter indicates a solid yet volatile stock market, influenced by AI enthusiasm, economic uncertainty, and monetary policy concerns [1] - The firm anticipates mixed market conditions in 2026, with many AI-related stocks appearing expensive while high-quality companies are trading at multi-year lows, presenting potential investment opportunities [1] Group 1: Market Performance - The S&P 500 Index rose by 2.66% in Q4 2025, driven by large-cap technology and communication services stocks [1] - Fenimore Small Cap Strategy returned -4.12%, underperforming the Russell 2000 Index, which returned 2.19% [1] - Fenimore Dividend Focus Strategy declined by -4.41% compared to the Russell Midcap Index's 0.16% return [1] - Fenimore Value Strategy saw a decline of -1.17% in Q4, also underperforming the Russell Midcap Index [1] Group 2: Company Focus - Amphenol Corporation - Amphenol Corporation (NYSE:APH) was highlighted as a top performer in both the Fenimore Value Strategy and Fenimore Dividend Focus Strategy [2] - As of January 15, 2026, Amphenol's stock closed at $154.22 per share, with a one-month return of 13.99% and a 52-week gain of 122.15% [2] - Amphenol has a market capitalization of $188.774 billion [2] - The company benefits from data center buildouts supporting AI, leading to a 128% organic growth in its IT Datacom segment in the most recent quarter [3]

Core Insights - Bristol Gate Capital Partners' Q3 2025 investor letter indicates that the US Equity Strategy underperformed the S&P 500® Total Return Index this quarter, primarily due to limited exposure to the AI/TMT and Value sectors, which benefited from the Federal Reserve's rate cut [1] - Despite underperformance, the portfolio achieved a 15% dividend growth over the past 12 months, supported by strong underlying fundamentals [1] Company Highlights - Amphenol Corporation (NYSE:APH) is highlighted as a key stock in the investor letter, with a one-month return of -3.74% and a 52-week gain of 96.11% [2] - As of December 30, 2025, Amphenol's stock closed at $136.20 per share, with a market capitalization of $166.716 billion [2] - Bristol Gate built a position in Amphenol while exiting Marsh & McLennan, citing its high-quality franchise, proprietary technology, and strong demand in the Information and Datacom segment [3] Financial Performance - Amphenol's Q3 sales increased by 53% in US dollars and 52% in local currencies, reaching $6.194 billion [4] - The company has achieved a 10% CAGR in sales and a 13% CAGR in EPS over the last decade, indicating robust growth and consistent dividend increases [3]

Group 1: Investment Performance - Qualivian Investment Partners outperformed the iShares MSCI USA Quality Factor ETF by 69.2% and 61.3% on a gross and net basis since inception through September 30, 2025 [1] - The fund exceeded the S&P 500 by 32.7% and 26.1% respectively, on a gross and net basis [1] Group 2: Company Overview - Amphenol Corporation - Amphenol Corporation designs and manufactures electrical, electronic, and fiber optic connectors [2] - The one-month return of Amphenol Corporation was -1.94%, while its shares gained 88.58% over the last 52 weeks [2] - As of December 22, 2025, Amphenol's stock closed at $135.14 per share, with a market capitalization of $165.419 billion [2] Group 3: Competitive Positioning - Amphenol Corporation is described as an industrial giant with a competitive moat due to its low-cost, mission-critical components, leading to high customer switching costs and pricing power [3] - The company is recognized as a proven compounder, increasing profit margins while expanding market share through organic growth and disciplined mergers and acquisitions [3] Group 4: Market Sentiment and Sales Performance - Amphenol Corporation was held by 89 hedge fund portfolios at the end of Q3 2025, an increase from 81 in the previous quarter [4] - The company's third-quarter sales increased by 53% in US dollars and 52% in local currencies, reaching $6.194 billion [4]

Core Insights - The connector manufacturing industry is crucial in the electronics sector, with a diverse range of applications across various fields, including automotive, telecommunications, and AI data centers [1][10]. Industry Overview - The connector industry is divided into three segments: upstream (raw materials), midstream (connector manufacturing), and downstream (end-user applications) [1]. - The upstream market includes metal and non-metal raw materials, while the midstream is dominated by manufacturing companies that process these materials into finished connectors [1]. Market Dynamics - The connector manufacturing sector is primarily concentrated in the eastern and southeastern coastal regions of China, with Guangdong province hosting the highest number of midstream enterprises [5]. - In 2024, the overall production and sales rate for listed companies in the connector sector is around 100%, with some companies like Ruikeda and Dingtong Technology reporting rates below 90% [8]. Company Performance - Companies such as AVIC Optoelectronics and Aerospace Electric have reported high gross profit margins of 36.54% and 38.68%, respectively [8]. - AVIC Optoelectronics produced 78,793,000 connectors and sold 80,540,000, achieving a production-to-sales ratio of 102.22% [9]. - Ruikeda's revenue surged by 55.29% in 2024, reaching 2.415 billion yuan, with 90.2% of its income coming from new energy vehicle connectors [11]. Recent Developments - Lixun Precision's automotive business revenue grew by 48.69% to 13.758 billion yuan in 2024, driven by acquisitions and partnerships with major automotive manufacturers [11]. - Changying Precision's revenue from new energy business reached 5.214 billion yuan, a 47.29% increase, with significant growth in the consumer electronics sector [11]. - Aerospace Electric's revenue decreased by 19.08% due to a slowdown in defense demand, but it improved its gross margin by 11.89 percentage points to 47.52% [11].