The approach of combining high growth momentum with a solid technical setup is based on a straightforward premise: you want stocks that not only show accelerating earnings and sales but also have the market’s backing via a strong uptrend and a consolidation pattern that offers a sensible entry point. The thinking goes that a stock with explosive fundamental growth will eventually be recognized by the market, and a period of price consolidation after a run-up can provide an opportunity to join the trend before the next leg higher begins.
By screening for a ChartMill High Growth Momentum Rating of at least 4, a Technical Rating above 7, and a Setup Rating above 7, we narrow the field to companies where the earnings story is strong and the price action is cooperative. Below, we break down how Amphenol Corp (APH) fits this mold.
High Growth Momentum Rating: 8/10
Amphenol scores a strong 8 out of 10 on the High Growth Momentum scale, which is the engine behind the fundamental side of this screen. The rating is built on a combination of earnings and sales growth, acceleration, profit margin expansion, earnings surprises, and analyst revisions. Let’s look at the numbers driving that score.
Earnings Growth
- EPS growth over the trailing twelve months (TTM): 77.83%
- EPS growth in the last reported full year: 76.72%
- EPS growth in the prior full year: 25.58% — This acceleration from 25% to 77% is a key checkmark for growth investors.
- Most recent quarter EPS growth (Q2Q): 68.25%
- The prior quarter EPS growth: 76.36%
- The quarter before that: 86.0%
Sales tell a similar story. Revenue growth over the TTM is 54.40%, and the most recent quarter saw sales jump 58.39% year-over-year. This is not a one-off spike; sales growth has remained above 49% for the last four quarters.
Surprises and Revisions
- 4 out of 4 earnings estimate beats in the last four quarters
- Average earnings beat percentage: 12.68%
- 4 out of 4 revenue estimate beats in the same period
- Average revenue beat percentage: 7.86%
- Next year’s EPS estimates revised up by 10.23% over the last three months
- Next year’s revenue estimates revised up by 6.55% over the last three months
Profit Margins
The trailing twelve-month profit margin stands at 18.49%, up from 15.92% in the prior fiscal year and 15.36% two years ago. This improving margin profile adds to the quality score.
In the High Growth Momentum framework, consistent earnings and sales acceleration, positive surprises, and upward estimate revisions are exactly what we look for. Amphenol delivers on all fronts.
Technical Rating: 10/10
Turning to technicals, the ChartMill Technical Rating is a perfect 10. This score reflects the stock’s overall technical health, factoring in trend strength, relative strength, and moving average positions.
- Short-term trend: Positive
- Long-term trend: Positive
- The stock is trading above its 20, 50, 100, and 200-day simple moving averages — all of which are rising.
- Relative strength over the past year is 90.13, meaning APH outperformed roughly 90% of all stocks.
- The 12-month performance is +67.63%, and the gains are well-distributed rather than concentrated in a short burst.
- The stock is currently near its 52-week high of $168.75, while the S&P 500 is not at a new high — a sign of market leadership.
A full breakdown of the technical analysis is available in the ChartMill Technical Report.
Setup Rating: 7/10
While the technical rating answers “which stock to buy,” the setup rating answers “when to buy it.” APH scores 7 out of 10 on setup quality, indicating a decent consolidation pattern is in place.
- Bull flag pattern: After a strong upward move, prices have pulled back slightly — a classic bull flag formation.
- Volatility has decreased, suggesting the stock is coiling.
- A resistance zone sits just above the current price between $163.97 and $166.26.
- A support zone exists between $161.26 and $163.71, providing a clear area for a stop-loss.
A possible trading setup based on this pattern could be:
- Entry: A buy stop above resistance at $166.27
- Exit (stop-loss): Below support at $161.25
- Maximum loss: 3.02%
- For a 0.75% total portfolio risk, you could allocate 25% of capital to this trade
It’s worth noting the tight distance between entry and exit — this is characteristic of a consolidation setup but also means a wider-than-average stop may be preferred for longer-term positions.
Putting It All Together
Amphenol checks all three boxes for this screen: a high growth momentum story backed by accelerating earnings, rising margins, and strong analyst sentiment; a flawless technical trend that shows market leadership; and a setup that, while not perfect, offers a defined entry with limited downside.
For investors looking to find more stocks that combine these traits, the High Growth Momentum Breakout Setups Screen provides a regular list of candidates meeting these criteria.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »
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Amphenol Corp (NYSE:APH) Screens as a High Growth Momentum Leader With a Strong Technical Setup
The approach of combining high growth momentum with a solid technical setup is based on a straightforward premise: you want stocks that not only show accelerating earnings and sales but also have the market’s backing via a strong uptrend and a consolidation pattern that offers a sensible entry point. The thinking goes that a stock with explosive fundamental growth will eventually be recognized by the market, and a period of price consolidation after a run-up can provide an opportunity to join the trend before the next leg higher begins.
By screening for a ChartMill High Growth Momentum Rating of at least 4, a Technical Rating above 7, and a Setup Rating above 7, we narrow the field to companies where the earnings story is strong and the price action is cooperative. Below, we break down how Amphenol Corp (APH) fits this mold.
High Growth Momentum Rating: 8/10
Amphenol scores a strong 8 out of 10 on the High Growth Momentum scale, which is the engine behind the fundamental side of this screen. The rating is built on a combination of earnings and sales growth, acceleration, profit margin expansion, earnings surprises, and analyst revisions. Let’s look at the numbers driving that score.
Earnings Growth
Sales tell a similar story. Revenue growth over the TTM is 54.40%, and the most recent quarter saw sales jump 58.39% year-over-year. This is not a one-off spike; sales growth has remained above 49% for the last four quarters.
Surprises and Revisions
Profit Margins
The trailing twelve-month profit margin stands at 18.49%, up from 15.92% in the prior fiscal year and 15.36% two years ago. This improving margin profile adds to the quality score.
In the High Growth Momentum framework, consistent earnings and sales acceleration, positive surprises, and upward estimate revisions are exactly what we look for. Amphenol delivers on all fronts.
Technical Rating: 10/10
Turning to technicals, the ChartMill Technical Rating is a perfect 10. This score reflects the stock’s overall technical health, factoring in trend strength, relative strength, and moving average positions.
A full breakdown of the technical analysis is available in the ChartMill Technical Report.
Setup Rating: 7/10
While the technical rating answers “which stock to buy,” the setup rating answers “when to buy it.” APH scores 7 out of 10 on setup quality, indicating a decent consolidation pattern is in place.
A possible trading setup based on this pattern could be:
It’s worth noting the tight distance between entry and exit — this is characteristic of a consolidation setup but also means a wider-than-average stop may be preferred for longer-term positions.
Putting It All Together
Amphenol checks all three boxes for this screen: a high growth momentum story backed by accelerating earnings, rising margins, and strong analyst sentiment; a flawless technical trend that shows market leadership; and a setup that, while not perfect, offers a defined entry with limited downside.
For investors looking to find more stocks that combine these traits, the High Growth Momentum Breakout Setups Screen provides a regular list of candidates meeting these criteria.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »