If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Amphenol (APH) . This company, which is in the Zacks Electronics - Connectors industry, shows potential for another earnings beat.When looking at the last two reports, this maker of fiber-optic products has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 15.58%, on average, in the ...

Key Takeaways CommScope's Andrew unit and LifeSync acquisitions expanded APH's telecom and healthcare reach. Communications Solutions grew 91% YoY in Q1, led by AI-driven datacom and mobile infrastructure demand. Harsh Environment Solutions rose 38% in Q1, as defense spending and aircraft programs boosted sales.Amphenol (APH) shares closed at $100.55 on Wednesday, very close to the 52-week high of $101, which it hit on July 15, 2025. APH shares have jumped 44.8% year to date, outperforming the Zacks Elect ...

Core Insights - Amphenol (APH) designs and manufactures interconnect systems, antennas, sensors, and high-speed specialty cables for key sectors such as cloud infrastructure, automotive, and industrial electronics [1] Industry Overview - The global data center market reached $347.6 billion in 2024 and is projected to grow to $652 billion by 2030, with a CAGR of 11.2% from 2025 to 2030, driven by AI workloads, hybrid cloud models, and demand for dense compute environments [2] - This growth is favorable for Amphenol's business prospects [2] Company Performance - APH's Communications Solutions segment generated $2.41 billion in revenue in Q1 2025, accounting for 50.2% of total revenues, with Q2 estimates at $2.47 billion [3][10] - The company’s diversified portfolio includes high-speed copper and fiber optic assemblies, backplane systems, and pluggable I/O interconnects, which are essential for high-performance data centers [4] Product Development - Amphenol introduced OCP-compliant liquid cooling connectors to meet the increasing thermal demands in AI-driven infrastructure, enhancing its offerings in connectivity and thermal management [5] Competitive Landscape - Amphenol faces competition from TE Connectivity and CommScope in the data center interconnect market, both of which are investing in next-generation connectivity technologies to meet AI-driven infrastructure demands [6][7] Stock Performance and Valuation - Amphenol's shares have increased by 43.2% year to date, outperforming the broader Zacks Computer & Technology sector, which rose by 7.5%, and the Zacks Electronics - Connectors industry, which returned 43.8% [8] - The forward 12-month Price/Earnings ratio for Amphenol is 35.48X, compared to the sector's 27.39X, indicating a premium valuation [11] - The Zacks Consensus Estimate for Amphenol's 2025 earnings is $2.67 per share, reflecting a 41.27% year-over-year increase [14]

Core Insights - Amphenol (APH) designs and manufactures connectors, interconnect systems, antennas, sensors, and high-speed specialty cable, serving diverse end markets including IT datacom, automotive, mobile devices, and industrial applications [1] - In 2024, China contributed approximately 22% of total revenue, highlighting its significance as a market for the company [1] Financial Performance - In Q1 2025, Amphenol's revenues from China reached $793.9 million, reflecting an 18.4% year-on-year increase [2] - For Q2 2025, APH expects net revenues between $4.9 billion and $5.0 billion, with projected China revenues at $1.05 billion [4] - The Zacks Consensus Estimate for Q2 2025 earnings is 66 cents per share, indicating a 53.49% year-over-year growth [13] - The consensus for APH's 2025 earnings is $2.68 per share, representing a 41.80% increase year over year [13] Market Challenges - Ongoing tariff-related trade tensions with China are expected to pressure Amphenol's outlook, with Chinese telecom and datacom imports facing 25% base duties and additional compliance-related surcharges [3] - These tariffs could dampen demand and reduce pricing flexibility in Amphenol's China-linked datacom business [3] Competitive Landscape - Amphenol faces competition from TE Connectivity (TEL) and CommScope (COMM) in global datacom infrastructure markets [5][6] - CommScope is a strong player in fiber connectivity and structured cabling, overlapping with Amphenol's IT datacom offerings [5] - TE Connectivity challenges Amphenol in high-speed interconnects and fiber systems across hyperscale and cloud markets [6] Stock Performance and Valuation - Amphenol's shares have appreciated 41.4% year to date, outperforming the broader Zacks Computer & Technology sector, which increased by 7%, and the Zacks Electronics - Connectors industry, which returned 40% [7][9] - The stock is trading at a premium with a forward 12-month Price/Earnings ratio of 35.08X compared to the sector's 27.36X [10]

Core Insights - Amphenol (APH) is expanding its portfolio and market presence through strategic acquisitions in communications, medical, and defense sectors, enhancing its high-technology interconnect solutions and supporting a diversified business model [1][2] - The company's acquisitions contributed 8% to its 2024 revenues, with approximately 15 acquisitions completed in the past nine quarters [1][2] - In Q1 2025, Amphenol reported sales of $4.8 billion, a 48% year-over-year increase, primarily driven by acquisitions [1][9] Strategic Acquisitions - Amphenol's acquisition strategy focuses on businesses that complement its core offerings and expand its presence in high-growth markets [2] - The acquisition of Conesys through the CIT acquisition in May 2024 strengthened Amphenol's capabilities in ruggedized connectors for aerospace, defense, and industrial applications [2] - The June 2022 acquisition of NPI Sensor Systems enhanced Amphenol's sensor-based technologies for automation and automotive segments [2] Recent Transactions - In Q1 2025, Amphenol closed two strategic transactions: the Andrew wireless infrastructure business and LifeSync [3] - The Andrew deal is expected to contribute approximately 9 cents to adjusted earnings, while the LifeSync acquisition expands Amphenol's interconnect product portfolio for medical applications [3] Competitive Landscape - Amphenol faces competition from companies like TE Connectivity (TEL) and Bel Fuse (BELFB) in key verticals such as telecom, defense, and industrial connectivity [4][6] - Bel Fuse is expanding in ruggedized connectors and defense-grade interconnects, which align with Amphenol's recent acquisitions [5] - TE Connectivity remains a strong competitor in high-speed interconnects and fiber-optic systems, challenging Amphenol across various markets [6] Financial Performance - Amphenol's shares have gained 42.2% year to date, outperforming the broader Zacks Computer & Technology sector's return of 6.1% and the Zacks Electronics - Connectors industry's increase of 40.3% [7] - The Zacks Consensus Estimate for Amphenol's Q2 2025 earnings is 66 cents per share, indicating a 53.49% year-over-year growth [13] - The consensus for APH's 2025 earnings is $2.68 per share, reflecting a 41.80% year-over-year increase [13] Valuation Metrics - Amphenol's stock is trading at a forward 12-month Price/Earnings ratio of 35.35X, compared to the sector's 27.23X [11] - The company currently holds a Zacks Rank 2 (Buy) [13]

Core Viewpoint - Amphenol (APH) has shown strong stock performance, with an 8.6% increase over the past month and a 40.6% gain since the start of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Electronics - Connectors industry [1] Financial Performance - Amphenol has consistently beaten earnings estimates, reporting EPS of $0.63 against a consensus estimate of $0.52 in its last earnings report, with a revenue beat of 13.93% [2] - For the current fiscal year, Amphenol is projected to achieve earnings of $2.68 per share on revenues of $20.14 billion, reflecting a 41.8% increase in EPS and a 32.33% increase in revenues [3] - The next fiscal year forecasts earnings of $2.91 per share on revenues of $21.46 billion, indicating year-over-year changes of 8.84% and 6.55%, respectively [3] Valuation Metrics - Amphenol's current trading metrics show a P/E ratio of 36.5X for the current fiscal year, which is above the peer industry average of 33.5X, and a trailing cash flow basis of 39.9X compared to the peer group's average of 13X [7] - The stock has a PEG ratio of 2.23, which does not place it among the top value stocks [7] Zacks Rank and Style Scores - Amphenol holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - The stock has a Value Score of C, a Growth Score of B, and a Momentum Score of C, resulting in a combined VGM Score of B [6][8]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Amphenol (APH) currently holding a Momentum Style Score of B [2] - The Zacks Rank system complements Style Scores, with APH rated 2 (Buy), indicating potential for outperformance in the market [3] Group 2: Amphenol's Performance Metrics - Over the past week, APH shares increased by 1.44%, while the Zacks Electronics - Connectors industry rose by 1.93% [5] - In a longer timeframe, APH's monthly price change is 9.06%, matching the industry's performance [5] - Over the last three months, APH shares have risen by 54.77%, and by 43.69% over the past year, significantly outperforming the S&P 500's increases of 7.91% and 13.53% respectively [6] Group 3: Trading Volume and Earnings Outlook - APH's average 20-day trading volume is 8,901,590 shares, indicating a bullish sign if the stock is rising with above-average volume [7] - In the past two months, one earnings estimate for APH has increased, raising the consensus estimate from $2.63 to $2.68 [9] - For the next fiscal year, two estimates have moved upwards with no downward revisions, suggesting positive earnings momentum [9] Group 4: Conclusion - Given the positive performance metrics and earnings outlook, APH is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Core Insights - Amphenol's datacom business is experiencing significant growth driven by investments from cloud providers, semiconductor manufacturers, and enterprise customers in high-speed connectivity to support AI and next-gen infrastructure [1][4] - The Communications Solutions segment, which includes the datacom business, reported revenues of $2.41 billion in Q1 2025, a 91% increase year-over-year, with datacom revenues accounting for 33% of total sales and rising 134% year-over-year [2][10] - Total orders for Amphenol reached $5.29 billion in Q1 2025, reflecting a 58% year-over-year growth, prompting the company to scale capacity investments and expand manufacturing [3][10] Business Performance - The datacom vertical is expected to remain a key growth driver within Amphenol's Communications Solutions segment as demand for high-bandwidth, low-latency solutions continues to rise [4] - Amphenol's shares have increased by 36.2% year-to-date, outperforming the broader Zacks Computer & Technology sector and the Zacks Electronics - Connectors industry [8] Competitive Landscape - Amphenol faces strong competition from TE Connectivity and CommScope, both of which are enhancing their connectivity portfolios to meet the growing demand in cloud and enterprise infrastructure [5] - TE Connectivity is focusing on high-speed connectors and fiber-optic systems tailored for hyperscale data centers, while CommScope is reinforcing its position with structured cabling systems and modular network solutions [6][7] Valuation and Estimates - Amphenol's stock is trading at a forward 12-month Price/Sales ratio of 5.52X, slightly above the industry average of 5.44X, and has a Value Score of D [11] - The Zacks Consensus Estimate for Amphenol's Q2 2025 earnings is 66 cents per share, indicating a 53.49% year-over-year growth, with the 2025 earnings estimate at $2.66 per share, reflecting a 40.74% increase year-over-year [14]

Company Overview - Amphenol (APH) currently has a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4] Performance Metrics - Over the past week, APH shares have increased by 3.81%, matching the performance of the Zacks Electronics - Connectors industry [6] - In a longer time frame, APH shares have risen by 45.57% over the past quarter and 38.91% over the last year, significantly outperforming the S&P 500, which increased by 4.46% and 13.71% respectively [7] Trading Volume - The average 20-day trading volume for APH is 6,933,875 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 8 earnings estimates for APH have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $2.32 to $2.66 [10] - For the next fiscal year, 8 estimates have also moved upwards, indicating a positive earnings outlook [10] Conclusion - Given the strong performance metrics, positive earnings revisions, and favorable momentum indicators, Amphenol is positioned as a strong investment opportunity [12]

Investors in Amphenol Corporation (APH) need to pay close attention to the stock based on moves in the options market lately. That is because the July 18, 2025 $105.00 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could ...