Watch Out: Barbarians At The Gate For Amphenol (APH)
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Amphenol as such a stock due to the following factors:
- APH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $71.8 million.
- APH has traded 592,657 shares today.
- APH traded in a range 209.7% of the normal price range with a price range of $1.75.
- APH traded above its daily resistance level (quality: 41 days, meaning that the stock is crossing a resistance level set by the last 41 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on APH:
Amphenol Corporation, together with its subsidiaries, primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors worldwide. It operates through two segments, Interconnect Products and Assemblies, and Cable Products and Solutions. The stock currently has a dividend yield of 0.9%. APH has a PE ratio of 25. Currently there are 2 analysts that rate Amphenol a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Amphenol has been 1.2 million shares per day over the past 30 days. Amphenol has a market cap of $18.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.86 and a short float of 1.9% with 4.35 days to cover. Shares are up 12.1% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Amphenol as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- APH's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 9.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- 35.91% is the gross profit margin for AMPHENOL CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.79% is above that of the industry average.
- Net operating cash flow has slightly increased to $194.20 million or 3.13% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -13.60%.
- APH's debt-to-equity ratio of 0.85 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that APH's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.79 is high and demonstrates strong liquidity.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- You can view the full Amphenol Ratings Report.
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