/Amphenol%20Corp_%20smartphone%20logo-by%20rafapress%20via%20Shutterstock.jpg)
Wallingford, Connecticut-based Amphenol Corporation (APH) designs, manufactures, and markets electrical, electronic, and fiber optic connectors. Valued at a market cap of $74.8 billion, the company's products are used in a variety of industries, including telephone, wireless, and data communications systems, cable television systems, and commercial and military aerospace electronics.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and Amphenol fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the electronic components industry. The company’s strengths lie in its diversified product portfolio, global manufacturing footprint, and strong presence across various industries, including automotive, aerospace, telecommunications, and industrial applications.
This tech giant has slipped 22.2% from its 52-week high of $79.39, reached on Jan. 24. Moreover, it has declined 16.8% over the past three months, lagging behind the broader Nasdaq Composite’s ($NASX) 9% fall over the same time frame.
In the longer term, APH has gained nearly 11.8% over the past 52 weeks, underperforming NASX’s 12.7% return. Moreover, on a YTD basis, shares of APH are down 11.1%, compared to NASX’s 6.4% loss over the same time frame.
To confirm its recent bearish trend, APH has been trading below its 50-day moving average since mid-December, with slight fluctuations, and has recently started trading below its 200-day moving average since late February.
On Jan. 22, shares of APH surged over 7% following its better-than-expected Q4 earnings release. Its revenue soared 29.8% year-over-year to $4.3 billion, surpassing consensus estimates by 7.2%. This was driven by strong organic growth across its key markets, including IT datacom, mobile networks, and commercial aerospace, along with contributions from acquisitions. Moreover, its adjusted EPS climbed by a notable 34.1% to $0.55, outperforming Wall Street’s projection of $0.50. Adding to the uptick, the company achieved a record adjusted operating margin of 22.4%, reflecting its strong operational performance.
Amphenol has outpaced its rival, TE Connectivity plc’s (TEL) 3.4% gain over the past 52 weeks but has lagged behind TEL’s 3% rise on a YTD basis.
Despite APH’s recent underperformance relative to the Nasdaq, analysts remain highly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 14 analysts covering it, and the mean price target of $86.08 suggests a 39.4% premium to its current levels.
