Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
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 $54.5 million.
- APH has traded 446,634 shares today.
- APH traded in a range 276.1% of the normal price range with a price range of $2.77.
- APH traded above its daily resistance level (quality: 11 days, meaning that the stock is crossing a resistance level set by the last 11 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 designs, manufactures, and markets electrical, electronic, and fiber optic connectors; interconnect systems, antennas, sensors, and sensor-based products; and coaxial and specialty cables worldwide. The stock currently has a dividend yield of 0.9%. APH has a PE ratio of 24.7. Currently there are 3 analysts that rate Amphenol a buy, no analysts rate it a sell, and 7 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 $16.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.09 and a short float of 1.5% with 4.16 days to cover. Shares are down 2.7% year-to-date as of the close of trading on Tuesday.
rates Amphenol as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.9%. Since the same quarter one year prior, revenues rose by 17.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- AMPHENOL CORP has improved earnings per share by 15.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AMPHENOL CORP increased its bottom line by earning $1.96 versus $1.70 in the prior year. This year, the market expects an improvement in earnings ($2.21 versus $1.96).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Electronic Equipment, Instruments & Components industry and the overall market, AMPHENOL CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- Net operating cash flow has increased to $224.10 million or 13.80% when compared to the same quarter last year. Despite an increase in cash flow, AMPHENOL CORP's cash flow growth rate is still lower than the industry average growth rate of 27.53%.
- You can view the full Amphenol Ratings Report.