Amphenol stock is nearing the buy point of a cup base, as the fiber-optics and electronic-parts maker got a lift following last week's earnings report. The IBD 50 Growth Stocks To Watch name is wavering Monday but retaining gains from its large earnings boost.
Amphenol makes connector system solutions and electronic parts used for fiber optics, harsh environments, high-speed interconnectivity and power products. It serves industries including automotive, aerospace, industrial and mobile networks.
It ranks No. 1 out of 20 stocks in the Electronics-Parts group, which holds the 151st spot out of the 197 industry groups that Investor's Business Daily tracks. Amphenol stock is also on the IBD 50, Big Cap 20 and MarketSurge 250 lists.
Amphenol Stock Builds A Cup Base
Amphenol stock popped 8.2% in heavy volume after its positive earnings report, which came on Wednesday. The fiber-optics stock surged above its closely watched 50-day moving average and reclaimed the 200-day moving average on Wednesday's move.
Shares are building the right side of an early-stage cup-without-handle base with a 79.39 buy point, according to MarketSurge pattern recognition. First- and second-stage bases tend to produce larger gains than third- or fourth-stage bases. The entry point is also its all-time high, reached on Jan. 24.
Its relative strength line recently reached a 52-week high.
Profit Growth Continues To Accelerate
Amphenol topped first-quarter earnings and sales estimates Wednesday. It also gave a second-quarter profit and revenue forecast that came in well above views. First-quarter profit increased 58% on 48% sales growth.
"We are pleased to have closed the first quarter of 2025 with record sales and adjusted diluted (earnings per share), both significantly exceeding the high end of our guidance," Amphenol Chief Executive R. Adam Norwitt said in the earnings report.
Stock Market Today: Stock Market News And Analysis
Amphenol expects second-quarter sales to be in the range of $4.9 billion to $5 billion, or 36% to 39% growth. Amphenol's earnings and revenue growth has accelerated for six straight quarters. Analyst profit forecasts have been recently raised to reflect 37% growth in 2025 and 10% in 2026.
The company has been a steady profit grower as seen in its Earnings Stability Factor of 6 out of 99 possible — with a lower number being better.
Mutual funds have padded their positions for eight straight quarters, according to IBD Stock Checkup. Six IBD Mutual Fund Index names hold the stock, including Fidelity Contrafund with its 39 million share position as of March.
Finally, Amphenol holds a 97 Earnings Per Share Rating and boasts a best-possible 99 Composite Rating.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
