Amphenol Trades Near 52-Week High: Should You Buy the Stock?

Amphenol APH shares closed at $122.64 on Tuesday, trading very close to the 52-week high of $127.50 it hit on Oct. 10. APH has been benefiting from strong order growth, which jumped 36% year over year and 4% sequentially to $5.523 billion. Amphenol’s expanding portfolio of fiber optic, power, antenna and sensor technologies continues to gain traction across datacom, aerospace and defense markets.APH shares have jumped 76.6% year to date (YTD), outperforming the Zacks Computer and Technology sector’s return of 21.6%. The company has outperformed peers, including TE Connectivity TEL and Littelfuse LFUS, YTD. Shares of TE Connectivity and Littelfuse have returned 54.3% and 10.6%, respectively.APH Stock’s YTD Performance Image Source: Zacks Investment Research The stock is currently trading above the 50-day and the 200-day moving averages, indicating a bullish trend.APH Stock Trades Above 50-Day & 200-Day SMAs Image Source: Zacks Investment Research Let us find out whether investors should buy the APH stock right now.Strong Portfolio & Acquisitions Aid APH’s ProspectsRising AI workloads and cloud infrastructure upgrades are fueling demand for high-speed interconnects. This momentum is expected to support APH’s Communications Solutions segment. Electrification in transportation and rising electronic content in medical devices are driving the adoption of Amphenol’s cable assemblies and sensor-based systems. These drivers are expected to support steady growth in the Interconnect and Sensor Systems segment. Amphenol continues to expand its portfolio and market reach through targeted acquisitions across communications, medical and defense verticals. Acquisitions contributed 15% to Amphenol’s first-half 2025 revenues. Plethora of acquisitions — CIT, Lutze, CommScope’s COMM Andrew business, LifeSync, Narda-MITEQ, XMA and Q Microwave — have been driving Amphenol’s prospects.In early August, Amphenol announced a definitive agreement to acquire CommScope’s Connectivity and Cable Solutions (“CCS”) business for $10.5 billion in cash. The deal expands Amphenol’s interconnect product capabilities in the fast-growing IT datacom market. The CCS acquisition will diversify Amphenol’s broad portfolio of fiber optic and other interconnect product solutions in the communications networks and industrial markets. The CCS business is expected to have sales and EBITDA margins of $3.6 billion and 26% in 2025, respectively.Amphenol also announced a definitive agreement to acquire Trexon for approximately $1 billion in cash. Trexon is expected to have 2025 sales and EBITDA margins of $290 million and 26%, respectively.Strong Liquidity to Boost APH’s Growth TrajectoryAmphenol generates solid cash flow, which allows management the opportunity to invest in product innovations, acquisitions and business development. In the second quarter of 2025, operating cash flow was $1.417 billion or 130% of net income, whereas the free cash flow was $1.122 billion or 103% of net income.Total liquidity at the end of the second quarter was $6.2 billion, including cash and short-term investments on hand of $3.2 billion plus availability under Amphenol’s existing credit facilities.In second-quarter 2025, the company purchased 2 million shares for $160 million and paid out dividends worth $200 million. Amphenol expects to deliver a strong cash flow in the near term despite a slight rise in capital expenditure as it increases spending on defense and IT datacom markets.APH’s Earnings Estimate Revision Shows Steady TrendThe Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at 78 cents per share, unchanged over the past 30 days and indicating 41.8% growth over the year-ago quarter’s reported figure. The consensus mark for fourth-quarter 2025 revenues is pegged at $5.65 billion, suggesting 30.8% growth from the year-ago quarter’s reported figure.Amphenol Corporation Price and Consensus  Amphenol Corporation price-consensus-chart | Amphenol Corporation QuoteThe Zacks Consensus Estimate for 2025 earnings is pegged at $3.03 per share, unchanged over the past 30 days and indicating 60.3% growth from 2024’s reported figure. The consensus mark for 2025 revenues is pegged at $21.58 billion, suggesting 41.8% growth from the 2024 reported figure.APH Stock Trades at a PremiumAmphenol shares are trading at a premium, as suggested by a Value Score of D. In terms of the forward 12-month price-to-earnings (P/E), APH is trading at 36.98X, higher than the broader sector and peers, including TE Connectivity and Littelfuse. The broader sector is trading at 28.93X while TE Connectivity and Littelfuse trade at 23.22X and 21.46X, respectively.APH Stock’s Valuation Image Source: Zacks Investment Research ConclusionAmphenol’s diversified end-market exposure, expanding interconnect portfolio and strong acquisition execution continue to support solid growth visibility. These factors justify a premium valuation.APH currently has a Zacks Rank #2 (Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. 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Click to get this free report Amphenol Corporation (APH): Free Stock Analysis Report TE Connectivity Ltd. (TEL): Free Stock Analysis Report Littelfuse, Inc. (LFUS): Free Stock Analysis Report CommScope Holding Company, Inc. (COMM): 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