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 $56.7 million.
- APH has traded 319,217 shares today.
- APH traded in a range 202.1% of the normal price range with a price range of $2.47.
- APH traded above its daily resistance level (quality: 91 days, meaning that the stock is crossing a resistance level set by the last 91 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 provides electrical, electronic, and fiber optic connectors; interconnect systems; and coaxial and specialty cables worldwide. The stock currently has a dividend yield of 1%. APH has a PE ratio of 21.2. Currently there are 5 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 660,900 shares per day over the past 30 days. Amphenol has a market cap of $12.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.35 and a short float of 1% with 2.26 days to cover. Shares are up 19.5% year to date as of the close of trading on Friday.
rates Amphenol as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- APH's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 7.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 30.55% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- AMPHENOL CORP has improved earnings per share by 10.5% 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 $3.39 versus $3.05 in the prior year. This year, the market expects an improvement in earnings ($3.78 versus $3.39).
- 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. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, AMPHENOL CORP's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $180.55 million or 41.71% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.63%.
- You can view the full Amphenol Ratings Report.