Amphenol Corp. (NYSE:APH) is a stock that has been catching the attention of growth-oriented investors, and for good reason. It was identified through a screening process that blends two selection methods: Mark Minervini’s Trend Template and a High Growth Momentum (HGM) rating. The Trend Template is a well-known set of technical criteria designed to isolate stocks in strong, sustainable uptrends—requiring specific moving average alignments, price proximity to 52-week highs, and a high relative strength ranking. The HGM rating, meanwhile, assesses a company’s fundamental momentum, focusing on accelerating earnings and revenue growth, improving margins, and positive analyst revisions. By combining these two lenses, the screen aims to find stocks that are not only technically sound but also backed by strong business performance, a combination that growth investors often seek.
Recent Performance and Technical Health
Amphenol’s technical profile is nearly textbook for a Minervini-style candidate. The stock earns a perfect ChartMill Technical Rating of 10, reflecting its consistent performance across both short and long timeframes. This aligns directly with the core objective of the Trend Template: to identify stocks where the prevailing trend is your ally.
The technical data confirms the stock is in a healthy Stage 2 uptrend:
- Current Price: $158.61, which is above all key moving averages.
- SMA(50) at $146.64 is above both the SMA(150) at $142.12 and the SMA(200) at $139.27. This "stacked" moving average alignment is a bullish signal indicating strong upward momentum.
- SMA(200) is rising, having moved from $139.07 to $139.27, confirming the long-term trend is positive.
- The stock is trading 67% above its 52-week low of $95.19 (well beyond the 30% threshold) and is within 11% of its 52-week high of $178.52 (meeting the 25% requirement).
- Its ChartMill Relative Strength (CRS) score of 88.74 means it is outperforming nearly 89% of all stocks in the database, a critical component of Minervini’s selection process.
While the short-term trend is currently neutral, the long-term trend remains firmly positive. The combination of these factors suggests a stock that has built a solid foundation and is displaying the technical characteristics of a market leader.
Fundamentals: The Engine for High Growth
The Trend Template ensures technical strength, but the High Growth Momentum rating evaluates the why behind the price action. The fundamental data provides a strong story for Amphenol’s recent outperformance.
The company shows exceptional growth across multiple fronts:
-
Earnings Growth: The EPS growth story is strong.
- EPS Growth (1Y, TTM): 77.8%
- EPS Growth (Last Fiscal Year): 76.7%
- Quarter-over-Quarter EPS Growth: 68.3%, with acceleration in preceding quarters (76.4%, 86.0%, 84.1%).
- EPS Estimate Beats: The company has beaten earnings estimates in all of the last 4 quarters by an average of 12.7%.
-
Revenue Growth: Sales growth fully supports earnings expansion.
- Revenue Growth (1Y, TTM): 54.4%
- Quarter-over-Quarter Sales Growth: 58.4%
- Revenue Estimate Beats: Beaten revenue estimates in all of the last 4 quarters by an average of 7.9%.
-
Accelerating Metrics & Profitability:
- The Free Cash Flow per Share of $3.76 has grown by 108% year-over-year, a strong indicator of financial health.
- Profit margins are improving, with the latest trailing twelve month margin at 18.5%, up from 15.9% in the prior fiscal year.
These fundamental metrics are precisely what growth investors look for: accelerating earnings and revenue, consistent estimate beats, and expanding profitability. The analysts are also taking notice, as seen in the 10.2% upward revision in next year's EPS estimate over the last three months, further reinforcing the positive growth narrative.
Valuation Metrics and Analyst Views
While high-growth stocks often command premium valuations, the strength of the underlying business warrants the premium. The consistent and accelerating earnings growth provides a basis for the stock’s performance. The broad-based beat on both earnings and revenue estimates across the last four quarters indicates that the business is executing at a high level and often exceeding market expectations, which is a key driver for price appreciation and positive analyst sentiment.
Summary from ChartMill’s Technical Analysis
Our detailed technical report on Amphenol (APH) provides a consolidated view. In summary, the stock receives an exceptional Technical Rating of 10/10, indicating strong and consistent technical health. However, the Setup Quality Rating is currently a 3/10. This means that while the stock is a technical strong performer, it is currently a bit too volatile to offer a clean, low-risk entry point. The price has been trading in a relatively wide range, making it difficult to pinpoint a precise support level for a stop-loss. For investors following Minervini’s approach, it would be wise to add the stock to a watchlist and wait for a tighter consolidation pattern (such as a Volatility Contraction Pattern) to develop before initiating a position. You can read the full technical analysis report here.
If you’re interested in finding other stocks that combine strong technical trends with high-growth fundamentals, you can explore a similar screening process by following this link to see the current results: View the High Growth Momentum + Trend Template screen.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. All investment decisions should be made with your own due diligence and, if necessary, consultation with a qualified financial professional.
Read full article here »
View the Zacks #1 Rank List
Amphenol Corp. (NYSE:APH) Shows Strong Trend Template and High Growth Momentum Profile
Amphenol Corp. (NYSE:APH) is a stock that has been catching the attention of growth-oriented investors, and for good reason. It was identified through a screening process that blends two selection methods: Mark Minervini’s Trend Template and a High Growth Momentum (HGM) rating. The Trend Template is a well-known set of technical criteria designed to isolate stocks in strong, sustainable uptrends—requiring specific moving average alignments, price proximity to 52-week highs, and a high relative strength ranking. The HGM rating, meanwhile, assesses a company’s fundamental momentum, focusing on accelerating earnings and revenue growth, improving margins, and positive analyst revisions. By combining these two lenses, the screen aims to find stocks that are not only technically sound but also backed by strong business performance, a combination that growth investors often seek.
Recent Performance and Technical Health
Amphenol’s technical profile is nearly textbook for a Minervini-style candidate. The stock earns a perfect ChartMill Technical Rating of 10, reflecting its consistent performance across both short and long timeframes. This aligns directly with the core objective of the Trend Template: to identify stocks where the prevailing trend is your ally.
The technical data confirms the stock is in a healthy Stage 2 uptrend:
While the short-term trend is currently neutral, the long-term trend remains firmly positive. The combination of these factors suggests a stock that has built a solid foundation and is displaying the technical characteristics of a market leader.
Fundamentals: The Engine for High Growth
The Trend Template ensures technical strength, but the High Growth Momentum rating evaluates the why behind the price action. The fundamental data provides a strong story for Amphenol’s recent outperformance.
The company shows exceptional growth across multiple fronts:
Earnings Growth: The EPS growth story is strong.
Revenue Growth: Sales growth fully supports earnings expansion.
Accelerating Metrics & Profitability:
These fundamental metrics are precisely what growth investors look for: accelerating earnings and revenue, consistent estimate beats, and expanding profitability. The analysts are also taking notice, as seen in the 10.2% upward revision in next year's EPS estimate over the last three months, further reinforcing the positive growth narrative.
Valuation Metrics and Analyst Views
While high-growth stocks often command premium valuations, the strength of the underlying business warrants the premium. The consistent and accelerating earnings growth provides a basis for the stock’s performance. The broad-based beat on both earnings and revenue estimates across the last four quarters indicates that the business is executing at a high level and often exceeding market expectations, which is a key driver for price appreciation and positive analyst sentiment.
Summary from ChartMill’s Technical Analysis
Our detailed technical report on Amphenol (APH) provides a consolidated view. In summary, the stock receives an exceptional Technical Rating of 10/10, indicating strong and consistent technical health. However, the Setup Quality Rating is currently a 3/10. This means that while the stock is a technical strong performer, it is currently a bit too volatile to offer a clean, low-risk entry point. The price has been trading in a relatively wide range, making it difficult to pinpoint a precise support level for a stop-loss. For investors following Minervini’s approach, it would be wise to add the stock to a watchlist and wait for a tighter consolidation pattern (such as a Volatility Contraction Pattern) to develop before initiating a position. You can read the full technical analysis report here.
If you’re interested in finding other stocks that combine strong technical trends with high-growth fundamentals, you can explore a similar screening process by following this link to see the current results: View the High Growth Momentum + Trend Template screen.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. All investment decisions should be made with your own due diligence and, if necessary, consultation with a qualified financial professional.
Read full article here »