Shares of Amphenol (APH) have been strong performers lately, with the stock up 8.4% over the past month. The stock hit a new 52-week high of $120.8 in the previous session. Amphenol has gained 71.5% since the start of the year compared to the 18.2% move for the Zacks Computer and Technology sector and the 71% return for the Zacks Electronics - Connectors industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 23, 2025, Amphenol reported EPS of $0.81 versus consensus estimate of $0.66 while it beat the consensus revenue estimate by 13.05%.
For the current fiscal year, Amphenol is expected to post earnings of $3.03 per share on $21.6 in revenues. This represents a 60.32% change in EPS on a 41.87% change in revenues. For the next fiscal year, the company is expected to earn $3.41 per share on $23.66 in revenues. This represents a year-over-year change of 12.42% and 9.56%, respectively.
Valuation Metrics
Amphenol may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Amphenol has a Value Score of D. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 39.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 39.3X. On a trailing cash flow basis, the stock currently trades at 48.6X versus its peer group's average of 15.5X. Additionally, the stock has a PEG ratio of 1.91. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Amphenol currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Amphenol fits the bill. Thus, it seems as though Amphenol shares could have a bit more room to run in the near term.
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Amphenol Corporation (APH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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