Have you been paying attention to shares of Amphenol (APH)? Shares have been on the move with the stock up 5.6% over the past month. The stock hit a new 52-week high of $126.11 in the previous session. Amphenol has gained 81.1% since the start of the year compared to the 24.4% move for the Zacks Computer and Technology sector and the 80.6% 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 $3.39 per share on $23.66 in revenues. This represents a year-over-year change of 12.17% and 9.56%, respectively.
Valuation Metrics
Though Amphenol has recently hit a 52-week high, what is next for Amphenol? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. 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 A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 41.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 41.6X. On a trailing cash flow basis, the stock currently trades at 51.3X versus its peer group's average of 13.9X. Additionally, the stock has a PEG ratio of 2.02. 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 consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Amphenol currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
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 passes the test. 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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