Amphenol Shares Rise 16% in a Month: Should You Buy the Stock?

Amphenol APH shares have appreciated 16.1% over the past month, outperforming the broader Zacks Computer & Technology sector’s return of 3.8% and equivalent to the Zacks Electronics Connectors industry’s growth. Since reporting third-quarter 2025 results on Oct. 22, APH shares have gained 12.1%.

Amphenol has also outperformed key rivals TE Connectivity TEL and ITT Inc. ITT over the past month. During this period, TE Connectivity gained 13% and ITT rose 11.5%. Both TE Connectivity and ITT compete directly with Amphenol in the electronic connectors market, serving similar sectors such as automotive, aerospace/defense and industrial applications.

APH is benefiting from a strong third-quarter performance that underscores its long-term investment appeal, driven by solid top-line growth, margin expansion, robust cash flow and a substantial dividend increase. Its consistent acquisition strategy and focus on innovation continue to enhance its technology capabilities and deepen its diversified end-market exposure, positioning the company for sustained growth and stability.

APH's Past Month Price Performance

APH Stock Trades Above the 50-Day & 200-Day SMAs

The stock is currently trading above the 50-day and the 200-day moving averages, indicating a bullish trend.

APH’s Valuation Is Premium

Amphenol is trading at a premium, as suggested by the Value Score of F. In terms of the forward 12-month Price/Earnings (P/E), APH is trading at 37.54X compared with the Zacks Computer and Technology sector’s average of 28.61X.

Amphenol’s premium valuation is well supported by its steady earnings growth and a strong track record of consistently surpassing the Zacks Consensus Estimate over the past year.

APH Stock’s Valuation

Let’s see if Amphenol is a good buy right now by taking a closer look at its fundamentals.

Acquisitions Drive Amphenol’s Long-Term Strength

Amphenol continues to strengthen its growth trajectory through a disciplined and well-executed acquisition strategy. The company’s consistent focus on combining acquisitions with innovation enables it to expand its product portfolio, deepen technological capabilities and broaden market reach.

In August 2025, Amphenol completed the acquisition of Rochester Sensors, a leading manufacturer of highly engineered, application-specific liquid level sensors for industrial markets, adding roughly $100 million in annual sales to its Interconnect and Sensor Systems segment. This deal enhances Amphenol’s position in the growing industrial sensing space, further diversifying its technology mix and end-market exposure.

The company recently acquired Trexon from Audax Private Equity for approximately $1 billion in cash, which will be included in Amphenol’s Harsh Environment Solutions segment. Additionally, the pending acquisition of CommScope’s COMM CCS business, expected to close by the first quarter of 2026, underscores its active pursuit of complementary assets. With $289 million deployed for acquisitions in the third quarter alone, Amphenol’s strategic M&A investments continue to bolster its innovation engine and strengthen its long-term growth prospects.

APH Offers Positive Q4 Guidance

Amphenol expects fourth-quarter 2025 earnings between 89 cents and 91 cents per share, indicating growth between 62% and 65% year over year. Revenues are anticipated to be between $6 billion and $6.1 billion, suggesting growth in the 39-41% range.

The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at 89 cents per share, up 14.1% over the past 30 days and indicating 61.82% growth over the year-ago quarter’s reported figure.

The consensus mark for fourth-quarter 2025 revenues is pegged at $5.76 billion, indicating year-over-year growth of 33.39%.

APH’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, with the average surprise being 17.90%.

Strong Finances Propel Amphenol’s Growth Path

Amphenol’s strong liquidity position continues to reinforce its growth prospects. At the end of the third quarter of 2025, the company reported $3.89 billion in cash and cash equivalents, up from $3.23 billion in the prior quarter, highlighting its exceptional ability to generate and maintain healthy cash reserves.

APH posted another quarter of outstanding cash flow performance, generating $1.47 billion in operating cash flow in the third quarter, up from $1.4 billion in the previous quarter, along with $1.2 billion in free cash flow. This strong cash generation underscores the company’s efficient operations and financial discipline, providing ample flexibility to fund strategic investments and acquisitions.

Amphenol also demonstrated a balanced capital allocation approach, returning $354 million to its shareholders in the third quarter through $201 million in dividends and $153 million in share repurchases. This consistent shareholder return, coupled with rising liquidity, highlights the company’s confidence in its long-term growth prospects.

Why Is Amphenol Stock a Buy?

APH stock looks attractive, driven by its strong earnings growth, solid cash flow and strategic acquisitions that expand its technology portfolio and market reach. With a proven record of successful integrations, robust liquidity and consistent shareholder returns, Amphenol’s disciplined M&A approach strengthens its long-term growth outlook, making the stock a compelling buy.
 
APH currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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