Amphenol Corporation (APH) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been Amphenol (APH). Shares have been marching higher, with the stock up 8.6% over the past month. The stock hit a new 52-week high of $98.07 in the previous session. Amphenol has gained 40.6% since the start of the year compared to the 6.1% gain for the Zacks Computer and Technology sector and the 40.3% return for the Zacks Electronics - Connectors industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 23, 2025, Amphenol reported EPS of $0.63 versus consensus estimate of $0.52 while it beat the consensus revenue estimate by 13.93%.For the current fiscal year, Amphenol is expected to post earnings of $2.68 per share on $20.14 in revenues. This represents a 41.8% change in EPS on a 32.33% change in revenues. For the next fiscal year, the company is expected to earn $2.91 per share on $21.46 in revenues. This represents a year-over-year change of 8.84% and 6.55%, respectively.Valuation MetricsAmphenol may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Amphenol has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 36.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 33.5X. On a trailing cash flow basis, the stock currently trades at 39.9X versus its peer group's average of 13X. Additionally, the stock has a PEG ratio of 2.23. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Amphenol currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Amphenol meets the list of requirements. Thus, it seems as though Amphenol shares could still be poised for more gains ahead.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks