Long or Short: Amphenol Corporation (NYSE: APH)

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    Amphenol Corporation is part of the computer hardware industry and technology sector. The company CEO is Richard Adam Norwitt. Amphenol Corp is engaged in the field of electronic components. It designs and manufactures electrical, electronic and fiber optic connectors, interconnect systems and coaxial and flat-ribbon cables.

    Previous Intraday Trading Performance:

    The APH stock showed a previous change of 0.02% with an open at 90.06 and a close of 89.51. It reached an intraday high of 90.22 and a low of 89.00.

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    Liquidity:

    The stock has a market cap of $26.7b with 298.7m shares outstanding, of which the float is 297.7m shares. Trading volume reached 1,480,165 shares compared to its average volume of 1,559,700 shares. Based on the current average volume and close price, the trading liquidity is good.

    Historical Trading Performance:

    Over the last five trading days, Amphenol Corporation shares returned -0.22% and in the past 30 trading days it returned -13.76%. Over three months, it changed -4.75%. In one year it has changed 3.95% and within that year its 52-week high was 105.51 and its 52-week low was 74.95. APH stock is 19.43% above its 52 Week Low.

    Our calculations show a 200 day moving average of 90.86 and a 50 day moving average of 97.53. Currently APH stock is trading -1.49% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

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    Earnings:

    The last annual fiscal EPS for the company was reported at 3.85 that ended on 31st of December 2018, which according to the previous close, that is a PE of 23.25. Based on 6 analyst estimates, the consensus EPS for the next quarter is 0.88. The TTM EPS is 3.79, which comes to a TTM PE of 23.62. Historically, the PE high was 47.40 and the PE low was 18.50. If the stock reached its PE low, that would represent a price of 70.11, which is a decrease of -21.68%.

    Below was the last reported quarterly diluted earnings per share:

    1stQtr of 2019 0.87
    4thQtr of 2018 1.09
    3rdQtr of 2018 1.01
    2ndQtr of 2018 0.91
    1stQtr of 2018 0.84

    The dividend per share is currently 0.92, which is a dividend yield of 1.03%. Also, the payout ratio is 24.27%, therefore the dividend is safe according to our calculations.

    Base on our calculations, the intrinsic value per share is 185.53, which means it is possibly undervalued and has a margin of safety of 51.75%.

    Indicators to Watch:

    Short-interest was 3,184,858, which was 1.07% of shares outstanding. The short-interest ratio or days-to-cover ratio was 2.93. This stock has some short interest, but it may be normal and no cause for concern if long the position.

    The current calculated beta is 0.96.

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    Fundamental Indicators:

    Based on last reported financials, the company’s return on equity is 31.40%, return on assets is 12.86%, profit margin is 14.81%, price-to-sales is 3.22 and price-to-book is 6.49.

    Company Scores:

    All scores are out of six:
     2  :Valuation Score
     6  :Past Performance Score
     3  :Financial Strength Score
     2  :Future Growth Score
     4  :Dividend Score
     3  :Overall Score

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    Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.