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Here's How Much You'd Have If You Invested $1000 in Amphenol a Decade Ago

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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

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

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Amphenol, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in October 2014 would be worth $5,580.56, or a gain of 458.06%, as of October 29, 2024, and this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 193.37% and gold's return of 114.50% over the same time frame.

Looking ahead, analysts are expecting more upside for APH.

Amphenol shares have outperformed the industry in the year-to-date period. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. Expanding spending on both current and next-generation defense technologies bodes well for APH’s top-line growth. Apart from Defense, Amphenol’s prospects ride on strong demand for its solutions across Commercial Air, Industrial, and Mobile devices. APH expects sales in the defense market to increase moderately on a sequential basis. For 2024, it expects mid-teens increase in sales from the Defense market. 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 in 2024 and beyond.

The stock is up 5.40% 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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