Amphenol Corporation (APH) Buy or Sell Stock Guide

Last updated: Sep 23, '17

The analysis below may be helpful to you if you have any of the following questions about APH stock:

  • Is APH a buy or a sell?
  • Should I sell or hold APH stock today?
  • Is APH a good buy / a good investment?
  • What are APH analyst opinions, recommendations, ratings?

Here are APH stock buy reasons/signals:

1. The proliferation of electronic content across end markets will enhance Amphenol's top-line growth.

2. The automotive market remains an attractive long-term growth opportunity for Amphenol.

3. Amphenol's acquisition strategy will strengthen its position in the connector space while maintaining industry-leading operating margins.

4. APH quarterly revenue growth was 7.60%, higher than the industry and sector average revenue growth (6.69% and 3.85%, respectively).

5. APH forward dividend yield is 0.94%, higher than the industry (0.38%) and sector (0.50%) forward dividend yields.

6. APH average analyst rating is Buy.

Here are APH stock sell reasons/signals:

1. Changes in global defense spending trends could dampen the sales of Amphenol's most profitable end market.

2. Amphenol has some exposure to the oil and gas industry, for better or worse.

3. Volatility in the cost of key metals can create short-term swings in Amphenol’s margins and profitability.

4. APH stock price ($82.92) is close to the 52-week high ($83.14). Perhaps now is a good time to sell?

5. APH profitability is declining. The YoY profit margin change was -0.62pp.

6. APH forward P/E ratio is 24.62, and it’s high compared to its industry peers’ P/E ratios.

7. APH Price/Book ratio is 6.34, and it’s high compared to its industry peers’ P/B ratios.

8. APH Price/Sales ratio is 3.78, and it’s high compared to its industry peers’ P/S ratios.

9. APH PEG ratio (P/E adjusted for growth) is 3.29, and it’s high compared to its industry peers’ PEG ratios.

10. APH average analyst price target ($78.75) is below its current price ($82.92).

What are your thoughts on APH?

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