• Amphenol (APH) shows strong technical momentum, trading near 52-week highs.
• APH stock has a 100% technical “Buy” signal via Barchart.
• Shares are up 35% over the past year.
• The stock set a new 52-week high on Friday, May 30 of $89.98.

Today’s Featured Stock:

Valued at $108 billion, Amphenol (APH) designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products, and coaxial and high-speed specialty cables. Amphenol’s manufacturing facilities are generally vertically integrated operations from the initial design stage through final design and manufacturing.  

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. APH checks those boxes. Since the Trend Seeker signaled a buy on April 24, the stock has gained 18.28%.

APH Price vs. Daily Moving Averages:

Barchart Technical Indicators for Amphenol:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading only 0.06% below its 52-week high, it won’t take much to hit another new high.

• Amphenol has a 100% technical “Buy” signal.
• The stock closed at $89.93 on May 30, above its 50-day moving average of $74.59.
• APH has a Weighted Alpha of +47.04.
• The stock has gained 35.5% over the past year.
• APH has its Trend Seeker “Buy” signal intact.
• Amphenol is trading above its 20, 50 and 100-day moving averages.
• The stock has made 11 new highs and gained 11.2% in the last month.
• Relative Strength Index is at 78.82%.
• The technical support level is $88.73.

Follow the Fundamentals:

• $108 billion market cap.
• 42.14x trailing price-earnings ratio.
• 0.73% Dividend yield
• Revenue is projected to grow 32.91% this year and another 7.82% next year.
• Earnings are estimated to increase 40.24% this year and an additional 10.15% next year.

Analyst and Investor Sentiment on Amphenol:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are moderately bullish on this stock.

• Wall Street analysts tracked by Barchart issued 12 “Strong Buy” and four “Hold” opinions on the stock.
• Value Line gives the stock its highest rating and comments: “The company’s excellent growth-via-acquisitions strategy is likely to continue to bear fruit. The stock is timely. Moreover, it offers appealing upside potential to the midpoint of our 18-month Target Price Range.”
• Morningstar thinks the stock is fairly valued and comments: “We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. Amphenol competes against numerous competitors in the fragmented electrical component industry, but its broad array of end markets allows it to expand the top line even amid an individual market downturn.”
• 16,500 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Amphenol currently has momentum and support from both the market and individual investors but faces competition from TE Connectivity (TEL).

I caution that APH is volatile and speculative — use strict risk management and stop-loss strategies.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.