) hit a 52-week high of $86.31 during the trading session on Dec
6. However, the stock closed the session at $86.11, which
reflects a solid year-to-date return of 26.5%. The average
trading volume aggregated 558,102 shares.
Despite its strong price appreciation, this Zacks Rank #3
(Hold) stock still has enough fundamentals that may further drive
the stock upward. Its recent acquisition of
General Electric Company
) Advanced Sensor business and long-term earnings growth of 4.5%
for 2013 are some catalysts driving the stock.
Impressive third-quarter 2013 results that comprised higher
sales across its businesses, top-line growth and new electronic
product rollouts were the primary driving factors for APH.
On Oct 17, APH reported net income for the third quarter at
$160.8 million or 99 cents per share compared with $147.4 million
or 90 cents in the year-ago quarter
The company's top-line growth is benefiting from improved
end-market demand, new product rollouts, and market share gains.
Demand continues to be strong in Aerospace, Industrial and
Broadband Communications. Amphenol aims to diligently focus on
its market and geographic diversification strategy along with a
strong commitment to develop enabling technologies for its
customers in all markets through both organic and inorganic
In addition, Amphenol is bullish about the accelerating
proliferation of new electronic products in most of its end
markets, which it expects to propel demand with time.
This apart, the company recently entered into an agreement to
acquire the Advanced Sensors business of General Electric for
approximately $318 million. The strategic move is aimed to
deliver value-added solutions to Amphenol's customers across a
wide range of end markets. The sensor and sensor-based product
offerings complement Amphenol's core interconnect offerings and
is expected to deliver long-term expansion opportunity. The
experienced management team of Advanced Sensors and the strong
operating discipline of Amphenol are expected to be beneficial
for both the companies. This acquisition is expected to close by
the end of 2013 and is expected to be accretive to earnings in
the first year itself.
Over the last 30 days, 2013 estimates have remained unchanged
at $3.78 per share. However, for 2014, 1 out of 9 estimates has
moved upward, helping the Zacks Consensus Estimate advance 0.2%
to $4.19 per share.
Other Stocks to Consider
Amphenol serves a variety of end markets, the diversification
of which enables it to post strong results. A sustained drive for
diversification has enabled Amphenol to further expand its market
share into new markets and new customers, and innovate new
Other stocks that look promising and are worth a look now
), having a Zacks Rank #1 ( Strong Buy), and
Advanced Photonix Inc
) that carries a Zacks Rank #2 (Buy).
AMPHENOL CORP-A (APH): Free Stock Analysis
ADV PHOTONIX -A (API): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis
MOLEX INC (MOLX): Free Stock Analysis Report
To read this article on Zacks.com click here.