Amphenol Corporation: A Look at Performance and Market Position
Wallingford, Connecticut-based Amphenol Corporation (APH) is engaged in the design, manufacturing, and marketing of electrical, electronic, and fiber optic connectors. The company boasts a market capitalization of $74.8 billion, indicating its substantial role in sectors such as telephone, wireless, data communications, cable television, and both commercial and military aerospace electronics.
As a company with a market cap exceeding $10 billion, Amphenol is classified as a “large-cap stock.” This classification highlights its size and influence within the electronic components sector. The company excels due to its diverse product offerings, extensive global manufacturing capabilities, and a solid presence across multiple industries, including automotive, aerospace, telecommunications, and industrial applications.
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This tech giant has experienced a 22.2% decline from its 52-week high of $79.39, achieved on January 24. Additionally, the stock has dropped 16.8% over the past three months, trailing the broader Nasdaq Composite’s ($NASX) 9% decrease during the same period.
Over a longer timeframe, APH has gained nearly 11.8% in the past 52 weeks, which is slightly below NASX’s 12.7% gain. Year-to-date, shares of APH are down 11.1%, compared to a loss of 6.4% for NASX.
Demonstrating its recent bearish trend, APH shares have traded below their 50-day moving average since mid-December, showing some fluctuations. Furthermore, the stock has been below its 200-day moving average since late February.
On January 22, APH shares surged over 7% following a positive Q4 earnings release that exceeded expectations. Revenue for the quarter soared 29.8% year-over-year to $4.3 billion, outperforming consensus estimates by 7.2%. This growth was driven by robust organic development in critical markets like IT datacom and mobile networks, as well as positive contributions from acquisitions. Additionally, adjusted earnings per share (EPS) increased by 34.1% to $0.55, surpassing Wall Street’s expectation of $0.50. The company also reached a record adjusted operating margin of 22.4%, indicating strong operational performance.
While Amphenol has outperformed its competitor, TE Connectivity plc (TEL), which posted a 3.4% gain over the past 52 weeks, it has lagged behind TEL’s 3% year-to-date increase.
Despite APH’s recent performance struggles relative to the Nasdaq, analysts maintain optimistic views on the company’s future. APH holds a “Strong Buy” consensus rating among 14 analysts, with a mean price target of $86.08 suggesting a 39.4% increase from its current price.
On the date of publication, Neharika Jain did not hold any positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
