For Immediate ReleasesChicago, IL – December 16, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include AB SKF (SKFRY) , Dillards (DDS) and Dycom Industries (DY) .Here are highlights from Tuesday’s Analyst Blog:Finally! U.S. Federal Jobs Data: Global Week AheadWhat is happening in the Global Week Ahead?The U.S. Federal g ...

Core Insights - Amphenol (APH) shares have increased by 90.3% over the past year, significantly outperforming the Zacks Computer & Technology sector's return of 24.1% [1] - The company has experienced strong order growth, which rose by 38% year over year and 11% sequentially, reaching $6.11 billion [1] - Amphenol's diverse portfolio in fiber optic, power, antenna, and sensor technologies is gaining traction in datacom, aerospace, and defense markets [1][7] - The company's acquisition strategy has been a key driver of growth, with over 50 acquisitions in the past decade [8] Performance Comparison - Amphenol has outperformed peers such as TE Connectivity (TEL), Corning (GLW), and Belden (BDC) in the past year, with TE Connectivity and Corning returning 49.9% and 68.9%, respectively, while Belden shares fell by 8.2% [2] Growth Drivers - Rising AI workloads and cloud infrastructure upgrades are increasing demand for high-speed interconnects, benefiting APH's Communications Solutions segment [7] - Electrification in transportation and increased electronic content in medical devices are driving the adoption of Amphenol's cable assemblies and sensor-based systems [7] Acquisition Strategy - Amphenol continues to expand its market reach through targeted acquisitions, including the recent acquisition of Trexon for approximately $1 billion, expected to be accretive to earnings in the first year [8][12] - The pending acquisition of CommScope's Connectivity and Cable Solutions business will enhance Amphenol's interconnect product capabilities in the IT datacom market [10] Financial Strength - Amphenol reported operating cash flow of $1.47 billion in Q3 2025, representing 117% of net income, with free cash flow at $1.215 billion or 97% of net income [11] - Total liquidity at the end of Q3 was $10.9 billion, including $3.9 billion in cash and short-term investments, supporting further acquisitions and shareholder returns [12] - The company returned $354 million through dividends and share buybacks in Q3 2025 and raised its quarterly dividend by 52% to 25 cents per share, effective January 2026 [12] Earnings Estimates - The Zacks Consensus Estimate for Q4 2025 earnings is 92 cents per share, indicating a 67.3% growth year-over-year, with revenues expected to reach $5.84 billion, suggesting a 35.2% increase [13] - For the full year 2025, earnings are estimated at $3.29 per share, reflecting a 74.1% growth from 2024, with revenues projected at $22.74 billion, a 49.4% increase [14] Valuation - Amphenol shares are trading at a premium, with a forward 12-month price-to-earnings (P/E) ratio of 36.10X, higher than the broader sector average of 28.53X and peers like TE Connectivity and Corning [15] - The stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend [18] Conclusion - Amphenol's diversified end-market exposure, expanding interconnect portfolio, and effective acquisition strategy support solid growth visibility, justifying its premium valuation [21]

Core Insights - Amphenol (APH) shares are trading near a 52-week high, benefiting from strong order growth of 36% year-over-year, reaching $5.523 billion [1][7] - The stock has surged 76.6% year-to-date, significantly outperforming the Zacks Computer and Technology sector [2][7] - Recent acquisitions, including CommScope's CCS and Trexon, are enhancing Amphenol's interconnect portfolio and market reach [7][12][13] Financial Performance - Amphenol's operating cash flow for Q2 2025 was $1.417 billion, representing 130% of net income, with free cash flow at $1.122 billion or 103% of net income [14] - Total liquidity at the end of Q2 was $6.2 billion, including $3.2 billion in cash and short-term investments [15] - The Zacks Consensus Estimate for Q4 2025 earnings is 78 cents per share, indicating a 41.8% growth year-over-year, with revenues expected to reach $5.65 billion, a 30.8% increase [17] Market Position and Valuation - Amphenol shares are trading at a premium with a forward P/E ratio of 36.98X, higher than the broader sector average of 28.93X and peers like TE Connectivity and Littelfuse [19] - The company has a Zacks Rank 2 (Buy) and a Growth Score of A, indicating strong investment potential [22] Growth Drivers - Rising AI workloads and cloud infrastructure upgrades are driving demand for high-speed interconnects, supporting the Communications Solutions segment [10] - Electrification in transportation and increased electronic content in medical devices are boosting the adoption of Amphenol's cable assemblies and sensor systems [10] - Acquisitions have contributed 15% to Amphenol's first-half 2025 revenues, enhancing growth prospects across various sectors [11]

Core Insights - Amphenol (APH) shares have increased by 44.8% year to date, outperforming the Zacks Electronics - Connectors industry and Zacks Computer and Technology sector, which appreciated by 42.7% and 8.4% respectively [1] - APH has outperformed peers such as CommScope, TE Connectivity, and Sensata Technologies Holding, which returned 44.2%, 23.4%, and 13.5% respectively [2] Stock Performance - APH shares closed at $100.55, near the 52-week high of $101 reached on July 15, 2025 [1] - The stock is trading above the 50-day and 200-day moving averages, indicating a bullish trend [5] Business Growth Drivers - The Communications Solutions segment grew 91% year over year in Q1, driven by AI-driven datacom and mobile infrastructure demand [7][11] - Harsh Environment Solutions segment rose 38% in Q1, supported by defense spending and aircraft programs [7][12] - The Interconnect and Sensor Systems segment saw a 5% year-over-year increase, driven by electrification in transportation and rising electronic content in medical devices [13] Revenue Projections - Amphenol projects second-quarter 2025 sales to rise in the high-single-digit range, with the Zacks Consensus Estimate for revenues at $4.97 billion, up 37.63% year over year [10] - The consensus estimate for the Communications Solutions segment is pegged at $2.48 billion for the upcoming quarter [11] - The Harsh Environment Solutions segment is expected to generate $1.32 billion in the second quarter [12] - The Interconnect and Sensor Systems segment is projected to reach $1.18 billion in revenues [13] Strategic Acquisitions - Amphenol has completed around 15 acquisitions over the past nine quarters, contributing 8% to revenues in 2024 [15] - The acquisition of CommScope's Andrew business is expected to add approximately 9 cents to 2025 earnings and enhance the communications segment [17] - The May 2024 acquisition of CIT expanded Amphenol's presence in defense, aerospace, and industrial markets [16] Earnings Guidance - Amphenol expects second-quarter 2025 earnings between 64 cents and 66 cents per share, with sales projected between $4.90 billion and $5 billion [18] - The consensus estimate for 2025 earnings is pegged at $2.67 per share, indicating a 41.27% growth year over year [19] Valuation - Amphenol shares are trading at a forward 12-month Price-to-Earnings (P/E) ratio of 35.87X, higher than the sector's average of 27.64X [20] - Compared to peers, APH appears expensive, with CommScope, TE Connectivity, and Sensata Technologies Holding trading at P/E ratios of 7.28X, 19.90X, and 9.19X respectively [22] Conclusion - Amphenol's diversified end-market exposure, expanding interconnect portfolio, and strong acquisition execution support solid growth visibility [23] - Despite a rich valuation, consistent outperformance and scale advantages justify the premium [23]