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Shares of Amphenol Corporation (APH - Free Report) hit a new 52-week high of $89.46 on Jan 9, before closing the trading session a notch lower at $89.42 for a healthy year-over-year return of 32.8%.

Amphenol’s share price has been on an uptrend from Oct 2013. Despite its strong price appreciation, this Zacks Rank #2 (Buy) stock still has enough fundamentals that may further drive the stock upward. Currently, the stock is trading at a forward P/E of 21.1x and has long-term earnings growth expectation of 12.5%.

Growth Drivers

Impressive third-quarter 2013 results that comprised higher sales across its businesses, healthy top-line growth and new product rollouts were the primary driving factors for Amphenol.

On Oct 17, Amphenol reported net income of $160.8 million or 99 cents per share compared with $147.4 million or 90 cents in the year-ago quarter. Quarterly sales were at a record high of $1,153.1 million. The company’s top line benefited from improved end-market demand, new products, and solid market share gains.

Demand continues to be strong in Aerospace, Industrial and Broadband Communications sectors. Amphenol focuses on increasing market penetration and geographic diversification through both organic and inorganic measures. It also has a strong commitment to high-quality technologically-driven products.

In addition, Amphenol is bullish about the accelerating proliferation of new electronic products in most of its end markets that is likely to propel demand with time. Amphenol Aerospace, an operating unit of the company, recently started offering additional copper to fiber media converter products. These assemblies, designed for military and aerospace environments, remove costly and fragile fiber transceivers and cables from circuit boards and are a strategic fit for the company’s product line.

Estimate Revisions

Over the last 7 days, the earnings estimates did not show any upward or downward revision for 2013. Despite a lack of estimate revisions, we envision an uptrend for the stock backed by its strong growth potential.

Other Stocks to Consider

Other stocks worth considering in the industry include IEC Electronics Corp. (IEC - Free Report) , TTM Technologies Inc. (TTM - Free Report) I) and Advanced Photonix Inc. . All these stocks carry a Zacks Rank #2.




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