Bull of the Day: Amphenol (APH)

Amphenol: Enabling the Electronics RevolutionZacks Rank #1 (Strong Buy) stock Amphenol (APH) is one of the world’s largest designers, manufacturers, and marketers of connectors and interconnect systems, antennas, solutions, sensors, and high-speed cable. Investors can think of Amphenol technology as the “electronic highway” that allows electronic devices to interface, shift electricity, and operate correctly. Amphenol does not rely on one specific industry or customer to generate business. Instead, the company serves a diverse set of high-growth industries, including:·       Automotive·       Broadband·       Commercial Aerospace·       Defense·       Industrial·       IT Datacom/Data Centers·       Mobile Devices·       Mobile NetworksAmphenol: Powering High-Growth IndustriesIDC predicts that artificial intelligence will contribute a staggering $20 trillion to the global economy by 2030, driving 3.5% of global GDP. Currently, much of the billions being spent by big tech juggernauts like Alphabet (GOOGL), Meta Platforms (META), and Amazon (AMZN) is aimed at data centers used to train large language models (LLMs) such as ‘ChatGPT.’ According to Advanced Micro Devices (AMD) and other leading AI providers, this growth is not expected to slow any time soon. APH provides the “picks and shovels” to the AI revolution. Data center expansion will require more of the company’s high-speed interconnects.In 2017, electric vehicles accounted for only ~1% of global automotive sales. Today, EVs account for 25% of all new car sales, and some projections anticipate that they will account for 40% by the end of the decade. Similar to data centers, the more EVs sold, the more automotive manufacturers will need to purchase APH’s high-speed interconnects.Amphenol FundamentalsAt a juicy 36%, Amphenol has some of the best profit margins on Wall Street.Image Source: Zacks Investment ResearchIn addition to its juicy profit margins, APH is one of the most consistent earnings growers. The company has grown quarterly EPS at a double-digit clip for seven consecutive quarters. Meanwhile, Zacks Consensus Analyst Estimates suggest that the robust double-digit growth will continue into next year.Image Source: Zacks Investment ResearchMoreover, APH continues to beat Wall Street estimates by a wide margin. Over the past four quarters, APH has delivered an average positive EPS surprise of 17.90%.Image Source: Zacks Investment ResearchAPH Technical AnalysisFrom a price action perspective, it’s difficult to find a smoother trending stock than APH. Currently, the stock is retreating to its 50-day moving average – a level it which it has found buyers at all year.Image Source: TradingViewBottom LineAmphenol is uniquely positioned as a top supplier of the world’s most powerful technology trends, supplying the essential components that enable modern electronics to function. Its diversified customer base, exposure to secular themes, and outstanding execution track record give it one of the strongest fundamental profiles in the hardware ecosystem.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 Amazon.com, Inc. (AMZN): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Amphenol Corporation (APH): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Meta Platforms, Inc. (META): 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