Amphenol

APH

Market cap $192B

Amphenol (APH) is well positioned to outperform the market, as it exhibits above-average growth in financials.

Amphenol (APH) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.

U.S. stocks settled higher on Friday, with the Dow Jones index gaining around 150 points during the session.

This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms. We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks. In addition to the primary list that yields 4.1%, we present two other groups of five DGI stocks each, from moderate to high yields of up to 8%.

Amphenol (APH) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.

Amphenol is well-positioned as Nvidia's primary connector supplier, benefiting from hyperscaler AI data center capex and robust IT Datacom growth. APH's IT Datacom segment contributed 41% of revenues in Q1 2026. Strong execution is reflected in APH's 26% operating and 30% cash flow margins, even amid ongoing acquisitions and integration.

APH's AI data center demand, acquisitions and diversified end-markets support growth, but debt, supply pressures and stretched valuation add risk.

I track a curated universe of 50 high-quality dividend growth stocks to identify opportune entry points based on valuation and future return potential. Year-to-date through June, the investable universe returned 8.69%, trailing SPY (10.10%) and SCHD (17.50%), but several individual stocks outperformed significantly. Currently, 39 out of 50 stocks offer a forward return estimate of at least 10%, with 22 appearing potentially undervalued by my free cash flow model.