Two Stocks to Sell: Amplitude (AMPL) and Luxfer (LXFR), One Stock to Buy: Amphenol (APH)

Tuesday, Sep 2, 2025 4:17 am ET1min read

Amplitude (AMPL) and Luxfer (LXFR) are two cash-producing companies with weak growth and inefficient cost structures. Amplitude has a 4.7% trailing 12-month free cash flow margin and faces challenges in its products, pricing, and go-to-market strategy. Luxfer has an 8.9% trailing 12-month free cash flow margin but is facing end-market challenges and declining sales. On the other hand, Amphenol (APH) has a 15% trailing 12-month free cash flow margin and is a well-established company with a long history of connecting technologies across various industries.

ConocoPhillips (COP) continues to demonstrate robust free cash flow generation, a key indicator of financial health, even amidst volatile commodity prices. In the second quarter, COP generated $4.7 billion in cash flow from operations, with expectations for stronger free cash flow in the second half of 2025 [1]. This resilience is attributed to its diversified asset portfolio and strategic investments in longer-cycle projects. Additionally, COP aims to deliver over $1 billion in cost reductions by 2026, further bolstering its financial position.

Comparatively, Amplitude (AMPL) and Luxfer (LXFR) face significant challenges. AMPL, with a 4.7% trailing 12-month free cash flow margin, struggles with product, pricing, and go-to-market strategy issues. Luxfer, with an 8.9% margin, is grappling with end-market challenges and declining sales. In contrast, Amphenol (APH), with a 15% trailing 12-month free cash flow margin, stands out as a well-established company with a strong history in connecting technologies across various industries.

While ConocoPhillips and Amphenol exhibit strong cash flow margins, AMPL and Luxfer lag behind. ConocoPhillips' strategic investments and cost reduction initiatives position it for sustained growth and market resilience. Amphenol's well-established presence and high cash flow margin indicate a strong foundation for future performance. In contrast, AMPL and Luxfer's challenges in their respective markets may hinder their ability to maintain robust cash flow margins.

References:
[1] https://www.tradingview.com/news/zacks:c00b85b25094b:0-conocophillips-resilient-free-cash-flows-build-long-term-value/

Two Stocks to Sell: Amplitude (AMPL) and Luxfer (LXFR), One Stock to Buy: Amphenol (APH)

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