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 "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) 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 $88.8 million.
- APH has traded 995,031 shares today.
- APH is trading at 3.45 times the normal volume for the stock at this time of day.
- APH crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in APH with the Ticky from Trade-Ideas. See the FREE profile for APH NOW at Trade-Ideas
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 1%. APH has a PE ratio of 25.3. 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 1.3 million shares per day over the past 30 days. Amphenol has a market cap of $15.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.22 and a short float of 1.5% with 2.26 days to cover. Shares are up 11.4% 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, increase in net income, solid stock price performance 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 5.7%. Since the same quarter one year prior, revenues rose by 15.7%. 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 14.7% 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 ($2.20 versus $1.96).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Electronic Equipment, Instruments & Components industry average. The net income increased by 13.6% when compared to the same quarter one year prior, going from $153.99 million to $174.93 million.
- 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 remained constant at $180.68 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -24.29%.
- You can view the full Amphenol Ratings Report.