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If You Invested $1000 in Amphenol a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Amphenol (APH - Free Report) ten years ago? It may not have been easy to hold on to APH for all that time, but if you did, how much would your investment be worth today?

Amphenol's Business In-Depth

With that in mind, let's take a look at Amphenol's main business drivers.

Amphenol designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable.

Amphenol’s manufacturing facilities are generally vertically integrated operations from the initial design stage through final design and manufacturing. The company’s manufacturing presence is in more than 30 countries.

Amphenol reported net sales of $12.55 billion in 2023. Effective Jan 1, 2022, Amphenol aligned its businesses into three newly formed reportable business segments: (i) Harsh Environment Solutions, (ii) Communications Solutions and (iii) Interconnect and Sensor Systems.

Harsh Environment Solutions segment designs, manufactures and markets a broad range of ruggedized interconnect products, including connectors and interconnect systems, printed circuits and printed circuit assemblies and other products.

Communications Solutions segment designs, manufactures and markets a broad range of connector and interconnect systems, including high speed, radio frequency, power, fiber optic and other products, together with antennas.

Interconnect and Sensor Systems segment designs, manufactures and markets a broad range of sensors, sensor-based systems, connectors and value-add interconnect systems.

Automotive, Broadband Communications, Commercial Aerospace, Industrial, Information Technology and Data Communications, Military, Mobile Devices, and Mobile Networks are the primary end markets served by the company.

Amphenol’s primary competitors include Carlisle, Commscope, Delphi, Sensata, TE Connectivity, 3M, among others.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Amphenol ten years ago, you're likely feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in August 2014 would be worth $5,150.61, or a 415.06% gain, as of August 22, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

The S&P 500 rose 182.12% and the price of gold increased 88.92% over the same time frame in comparison.

Analysts are anticipating more upside for APH.

Amphenol shares have outperformed the industry in the year-to-date period. It witnessed strong order growth in second-quarter 2024 resulting in a strong book-to-bill ratio of 1.12:1. Acquisitions are helping Amphenol expand its position across a broad array of technologies and markets. Its wide array of interconnect and sensor products boosts long-term prospects. Amphenol’s diversified business model lowers the volatility of individual end markets and geographies. Strong cash flow generating ability is noteworthy. Amphenol expects to deliver strong cash flow despite slight rise in capital expenditure as it increases spending on defense and IT datacom markets. However, a challenging short-term wireless investment environment, and weakness in spending by network operators do not bode well for Amphenol’s prospects.

The stock is up 8.40% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2024. The consensus estimate has moved up as well.

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