Amphenol's 15min chart triggers RSI overbought and KDJ death cross signals.

Wednesday, Sep 3, 2025 10:21 am ET1min read

Amphenol's 15-minute chart exhibits an overbought RSI indicator, along with a KDJ Death Cross at 09/03/2025 10:15. This suggests that the stock price has experienced a rapid ascent, potentially exceeding fundamental support levels. Furthermore, momentum indicators indicate a shift towards a downward trend, with a potential for further depreciation in the stock price.

Amphenol Corporation (APH) has been experiencing significant growth in its financial performance, driven by strategic acquisitions and organic growth. According to the company's latest reports, revenues in the first half of 2025 jumped by 52% on a reported basis, with organic growth contributing 37% to hit $10.46 billion. The company's second-quarter 2025 revenues increased by 57% year over year, with a reported basis growth of 15% from acquisitions and 41% organically to $5.65 billion [1].

Amphenol has been actively acquiring companies to bolster its product portfolio and expand into new markets. Notable acquisitions include the Andrew business from CommScope, LifeSync, Narda-MITEQ, XMA, and Q Microwave, contributing to its growth. The company also announced a definitive agreement to acquire CommScope's Connectivity and Cable Solutions (CCS) business for $10.5 billion in cash, expected to add significant sales and EBITDA margins in the AI and data center applications market [1].

Despite its impressive financial performance, Amphenol faces stiff competition from companies like TE Connectivity and RF Industries. TE Connectivity is benefiting from strong demand in AI and energy applications, while RF Industries is growing due to the increasing adoption of its integrated solutions [1].

Technically, Amphenol's stock has exhibited an overbought RSI indicator and a KDJ Death Cross at 09/03/2025 10:15. This suggests that the stock price has experienced a rapid ascent, potentially exceeding fundamental support levels. The momentum indicators also indicate a shift towards a downward trend, with a potential for further depreciation in the stock price [2].

Jim Cramer, a prominent financial analyst, has recommended holding onto Amphenol despite its high valuation. He advises against chasing the stock due to its stretched valuation but acknowledges the company's strong performance and strategic initiatives [2].

Amphenol's stock has seen impressive year-to-date growth, with a 59% increase, driven by its strong financial performance and strategic initiatives. However, the company's valuation appears stretched, with a trailing P/E of 43.40, which exceeds its 5-year average of 29.69 [2].

In conclusion, while Amphenol's financial performance is robust, investors should be cautious due to the stock's stretched valuation and technical indicators suggesting a potential downward trend. For those with a long-term horizon, the company's strategic agility and earnings momentum make it a high-conviction holding, provided macroeconomic risks remain contained.

References:
[1] https://finance.yahoo.com/news/acquisitions-shaping-amphenols-growth-trajectory-161100170.html
[2] https://www.ainvest.com/news/jim-cramer-stock-picks-amphenol-emcor-group-circle-internet-group-2508/

Comments



Add a public comment...
No comments

No comments yet