Amphenol Rises 10% in a Month: Should Investors Buy the Stock?

Amphenol APH shares have risen 10.4% in the past month, driven by strong second-quarter 2025 results and solid third-quarter 2025 guidance. Since the second-quarter 2025 results reported on July 23, APH shares have jumped 9.1%, outperforming the broader Zacks Computer and Technology sector’s return of 4.2%.Amphenol reported second-quarter 2025 adjusted earnings of 81 cents per share that beat the Zacks Consensus Estimate by 22.73% and surged 88.4% year over year. Net sales increased 56.5% year over year (56% in local currencies) to $5.7 billion, beating the consensus mark by 13.05%. Organically, net sales increased 41% year over year.For third-quarter 2025, Amphenol expects earnings between 77 cents and 79 cents per share, indicating growth between 54% and 58% year over year. Revenues are anticipated between $5.4 billion and $5.5 billion, suggesting growth in the 34-36% range.The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at 77 cents per share, up a dime over the past 30 days and indicating 54% growth over the year-ago quarter’s reported figure. The consensus mark for third-quarter 2025 revenues is pegged at $5.48 billion, suggesting 35.6% growth from the year-ago quarter’s reported figure. Amphenol Corporation Price and Consensus Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote APH shares have jumped 58.2% year to date (YTD), outperforming the broader sector’s return of 14.6%. The company has outperformed peers, including TE Connectivity TEL, Sensata Technologies Holding ST and AMETEK AME YTD. Shares of Sensata Technologies, TE Connectivity and AMETEK have returned 44.3%, 21% and 3.7%, respectively.APH Stock’s YTD Performance Image Source: Zacks Investment Research The stock is currently trading above the 50-day and the 200-day moving averages, indicating a bullish trend.APH Stock Trades Above the 50-Day & 200-Day SMAs Image Source: Zacks Investment Research So, is APH stock still a buy right now? Let’s analyze.Amphenol’s Strong Portfolio to Boost ProspectsAPH’s strong portfolio is helping drive order growth, which jumped 36% year over year and 4% sequentially to $5.523 billion, resulting in a book-to-bill ratio of 0.98:1. Amphenol’s expanding portfolio of fiber optic, power, antenna and sensor technologies continues to gain traction across datacom, aerospace and defense markets. In the second quarter of 2025, sales from the defense end market surged 25% year over year and 18% organically. The company expects defense sales to increase modestly on a sequential basis, including acquisitions. APH’s leading position in the defense interconnect market is noteworthy in this regard. Rising AI workloads and cloud infrastructure upgrades are fueling demand for high-speed interconnects. This momentum is expected to support the Communications Solutions segment. Electrification in transportation and rising electronic content in medical devices are driving the adoption of Amphenol’s cable assemblies and sensor-based systems. These drivers are expected to support steady growth in the Interconnect and Sensor Systems segment. Amphenol’s deep portfolio and diversified end markets continue to reinforce long-term growth prospects.Strategic Acquisitions Drive Amphenol’s ProspectsAmphenol continues to expand its portfolio and market reach through targeted acquisitions across communications, medical and defense verticals. The May 2024 acquisition of CIT extended Amphenol’s presence across defense, aerospace and industrial markets. Lutze added momentum to its industrial portfolio by expanding high-technology interconnect offerings.The acquisition of CommScope’s Andrew business strengthened Amphenol’s position in mobile infrastructure, adding base station antennas and distributed antenna systems. LifeSync brought in a $100 million medical interconnect portfolio, reinforcing Amphenol’s foothold in healthcare applications.In the second quarter of 2025, the company completed the acquisition of New York-based Narda-MITEQ, which is expected to contribute $120 million in annual sales. The acquisitions of Narda-MITEQ, XMA and Q Microwave strengthen Amphenol’s presence in RF interconnect and active RF components.Valuation: Amphenol Stock Trades at a PremiumAmphenol shares are trading at a premium, as suggested by a Value Score of F.In terms of the forward 12-month Price-to-Earnings (P/E), APH is trading at 34.36X, higher than the sector’s average of 28.39X, TE Connectivity’s 22.24X, Sensata Technologies’ 9.48X and AMETEK’s 25.02X.Price/Earnings Ratio (F12M) Image Source: Zacks Investment Research ConclusionAmphenol’s diversified end-market exposure, expanding interconnect portfolio and strong acquisition execution continue to support solid growth visibility. These factors justify a premium valuation.APH currently sports a Zacks Rank #1 (Strong Buy) and a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH): Free Stock Analysis Report Sensata Technologies Holding N.V. (ST): Free Stock Analysis Report AMETEK, Inc. (AME): Free Stock Analysis Report TE Connectivity Ltd. (TEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks