Is APH Stock a Solid Long Term Investment?

Stock Market

When you’re looking for a solid long-term investment, it’s important to find a company that actually knows what they’re doing as well as one that’s been around for at least a few years. That way, you know that you’re at the very least investing in something that’s got some decently solid footing under it because they have demonstrated the ability to survive. When you consider these factors, you might think about Amphenol Corporation. They manufacture antennas of all kinds for virtually everything, including automobiles and aircraft. As a matter of fact, if it weren’t for them it would be a lot more difficult for society to communicate in the same manner as they’re accustomed to doing now. Does that mean that you should consider them as a long-term stock option? Keep reading to find out more.

About the Company

There are a couple of different things about this company that will probably stand out most strongly to you as soon as you’re aware of them. The first is that the company has been around since 1932. That means that they definitely know how to stay in business because they have demonstrated that they’re capable of weathering more than their fair share of storms. There isn’t a business in existence that has managed to stay open this long that hasn’t been through both good and bad times. You can bet that any business that is still open after all these years knows how to make a go of things, even when it’s not so easy to do so. What else should stand out for you about this particular company? In today’s trading, a single share of stock is currently worth $73.18. That’s definitely a hefty price tag, to say the least. Keep in mind, the stock is down by 1.39% today. Does that spell something catastrophic on the horizon or is it just a normal day of trading with its typical ups and downs? This is where you have to start diving in and doing some serious research in order to get the information that you need.

The Last 30 Days

If you’re looking at information about the way that this particular stock has performed over the course of the last 30 days, you’ll probably be glad to know that it has appeared fairly stable when compared to a lot of the other things that have been happening on the stock market. As a matter of fact, it’s done very well at remaining fairly steady, save for a single dip that occurred during the middle of March. The thing that really bolstered investors was that when the stock did dip during March, it came right back up within the next 24 hours. As a matter of fact, it has stayed fairly steady since then. Granted, there haven’t been a lot of substantial gains but there haven’t been any substantial losses, either. That’s definitely saying something, especially at a time when a lot of stocks are crashing and either taking a very long time to recover or simply not recovering at all.

Promising Signs

There are a lot of different things about this particular stock that make it look like a promising option as a long-term investment, but is that really true? Everybody knows that things aren’t always what they appear to be, so what is one supposed to make out of this stock that is worth more than $70 per share and seems to be holding its own in the stock market, even during its most volatile days? One thing that you need to consider is the possibility that the stock is doing so well because the company is on the cusp of achieving something that hasn’t really been achieved by anyone else yet. They’re highly involved with the development of 5G cell phone service throughout rural America. That is definitely saying something, as there are still countless numbers of places throughout rural America where you can scarcely make or receive a phone call. It may be hard to believe that this is the case, especially with all of the technology that exists which is seemingly supposed to combat these things, but that is indeed the way it seems to go. Truth be told, it can be absolutely maddening to try and make a phone call in a desolate area of America where you’re lucky if you can get a single bar. The question is, how does any of this get addressed successfully?

The problem has been ever-present for a number of years and so far, nothing that anyone else has done has seemed to fix the issue. As it turns out, it’s possible to fix the issue, but it can’t be done overnight. This is where Amphenol comes in. They have the technology to do what needs to be done in order to address this problem. As a matter of fact, they specialize in this type of thing so they know exactly what they need to do without any question whatsoever. That being said, they need time and the funding to do it. They are on the cusp of achieving all of this because they have secured the funding and they’re set to start working on it almost immediately. The question is, how long is it going to take them to finish all of this and is anyone else that could be a potential competitor going to crop up in the meantime? This is where you have to start considering a lot of different things in order to decide whether or not this could be a potential long-term investment that you want to make.

Reliable Service Means More Valuable Stock

If you go back and look at the two things that you need to examine from the above paragraph, you’ll see that one of them involves deciding whether or not this company is capable of getting this particular endeavor completed in a timely fashion. The other question involves whether or not someone else that has better technology is going to come along and compete with them before they even get a chance to get everything off the ground. In order to answer the first question, you have to realize that the company is very much capable of achieving this goal. As a matter of fact, that’s what they’ve been working toward for years now.

That being said, it doesn’t matter whether it is Amphenol or someone else that installs all of the 5G cables that are necessary to enhance the speed of cell phone service in rural America, it is not a process that goes quickly. All of that cable has to be laid out and secured, something that takes a long time because there is a lot of physical effort involved. As far as the possibility of competitors coming along and stealing the company’s thunder, you have to understand that it is a competitive market and that is always a possibility. As a matter of fact, it’s virtually impossible to secure any market without chances of something like that happening. It is the very nature of competitive business. At the moment, there isn’t really anyone else involved that could potentially come along and take over. That doesn’t mean that the same thing is going to ring true in a year’s time.

Fourth-Quarter Earnings

When you look at the company’s fourth-quarter earnings, it’s easy to feel like they can do no wrong. As a matter of fact, the company saw their fourth-quarter earnings total a staggering $3 billion. That’s 25% more than they earned in the last quarter and 18% more than they earned at this time last year. That is definitely good news for anyone who is considering purchasing this stock as a long-term investment because it proves that they are very much on the upswing. Furthermore, it doesn’t really look like anything is going to change that in the near future. In fact, the thing that has investors most worried as of late is the fact that the stock is worth so much money that they are concerned that it has essentially capped itself and will start going back down because there’s nowhere else for it to go. If you feel like they’re right in that assumption, then you might want to wait until the stock starts to slide, make your purchase, and then wait for it to go back up in order to resell it. However, if you believe that the stock can still increase in value, you may not be doing yourself any favors to wait. The stock is currently worth a little more than $73 per share. There are certainly other stocks on the stock market that are worth well over $100 per share, so it only stands to reason that this stock could potentially go up significantly.

Long-Term Performance

Another thing that makes a lot of people feel like this could potentially be a good long-term investment is the fact that when you look at its performance over the course of the last several years, it’s currently doing better than ever. As a matter of fact, you can go all the way back to 2017 and look at the performance of the stock and it won’t take you long to figure out that they have been a consistent performer from that point forward. There are not very many companies that can truthfully say that their stock has consistently performed well over the course of that many years. As a matter of fact, a lot of them would have a difficult time truthfully saying that their stock has performed that well for even a single year. When you look at it in this context, it quickly becomes apparent that something rather significant would have to happen in order for the stock to plummet. Of course, there is always the possibility that something could go wrong with their new 5G endeavor or that a new competitor could come out of the blue and give them a genuine run for their money. Aside from those two things happening, it would be difficult to honestly assume that this would not be a good option for you to invest in.

Weighing the Options

Now that you have the information in front of you, you can make an educated decision about whether or not this is a stock that could potentially be a good long-term investment for you. There is a lot to be considered here, just as in any case. This particular stock seems almost bulletproof. However, anyone that has spent any amount of time on the stock market whatsoever will tell you that there is no such thing. Things happen that no one sees coming, even when they’re looking for potential fires that need to be put out and they have an innate understanding of how the stock market works. Unfortunately, it is simply the nature of investing. What does that mean for you? It means that you have to take all the information you’re given and then make the best decision you can. In this particular case, you can reasonably assume that if you purchase the stock at today’s prices, there will be a point in the future where you can cash in on that stock for even more money. That doesn’t necessarily mean that the price of the stock won’t go down a few times here and there. However, the whole point in purchasing something as a long-term investment is to hold onto it until it’s worth more money. Is there a reasonable chance that you could purchase the stock today and then sell it for more than what you paid for it at a future point? Almost everyone would agree that it’s not only reasonable, but likely. The question is, how much money do you want to spend investing today in order to purchase enough shares for all of this to be worth your while? You might be doing yourself a favor to put some money together, purchase several shares and then sit back and wait until it suits you to sell them.

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