Data center play Amphenol is just below a four-weeks-tight pattern's buy point of 127.50. The buy point is the stock's all-time high. The maker of electrical and fiber-optic connectors is Wednesday's choice for IBD 50 Stocks To Watch.
IBD MarketSurge's chart analysis tools show that since their breakout in May at a buy point of 79.39, Amphenol shares have gained 54%, based on Tuesday's closing price. Shares are rebounding from their 21-day moving average.
Amphenol also makes antennas, high-speed connectivity cables and sensors. Its products are used across several industries such as automotive, aerospace and defense, and data communications, including data centers and cloud infrastructure.
Its June-ended period marked the seventh consecutive quarter of growth. Earnings climbed 84% to 81 cents per share and sales bulked up by 57% to $5.7 billion, the same year-earlier quarter. The "exceptional organic growth in the IT datacom market" helped drive up second-quarter sales, the company said in its report released July 23.
Data Center Stock Sets Up With Earnings Due
Amphenol's third-quarter results are due Oct. 22. Analysts see a 59% earnings increase to 79 cents per share on a 37% rise in sales to $5.5 billion from same quarter a year earlier. The consensus views are slightly above the company's midpoint guidance of 78 cents per share on sales of $5.45 billion.
For the full year, analysts have raised their profit outlooks, with estimates sitting at $3.04 per share, representing a potential jump of 61%. For 2026, analysts have also raised their earnings estimates to $3.47 per share to expect a 14% increase from the current year.
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Amphenol designs, manufactures, and assembles its products across nearly 40 countries. The data center stock holds an ideal Composite Rating and EPS Rating of 99. The Relative Strength Rating is also high, at 91. Amphenol stock ranks first in the electronic-parts group, according to IBD Stock Checkup.
Mutual funds have been net buyers of the stock over the recent 13 weeks, giving Amphenol stock an Accumulation/Distribution Rating of A-. Demand over the past 50 days has been running high as well, going by the Up/Down Volume Ratio of 1.5.
Mutual funds own 56% of outstanding shares. More funds have been net buyers of the stock over the past seven quarters. In the IBD mutual fund index, the Virtus KAR Mid-Cap Growth Fund (PHSKX) and the Fidelity Contrafund (FCNTX) hold shares of Amphenol.
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