The Alpha Algorithm Targets a New Name

Founded in 1932 and headquartered in Wallingford, Connecticut, Amphenol Corporation (APH) is one of the world’s largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors, interconnect systems and coaxial and flat-ribbon cable.

Amphenol Corporation (APH) vs. the S&P 500 over one year.

Here are eight top investment strategies betting on Amphenol Corporation (APH).

1. Momentum Factor

The stock is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which historically has driven a significant part of companies’ risk and return.

2. Momentum Model

The stock is among the top approximately 100 U.S.-listed companies to demonstrate powerful strength characteristics relative to the 3,000 largest U.S.-listed companies.

3. Insider Sentiment

Amphenol is one of 100 equally weighted U.S.-listed large- and mid-cap stocks chosen based on trading in a company’s stock by corporate insiders, price momentum and trailing 12-month volatility. Specifically, the increase in insider holdings is scrutinized.

4. Low Interest-Rate Sensitivity

Amphenol is a large-cap U.S. stock selected for its low volatility and positive price performance in a rising-interest-rate environment.

5. Capital Strength

The stock is part of a strategy that seeks to outperform the market by selecting companies based on the strength of their balance sheets, long-term debt ratios and return on assets (ROA).

6. Large-Cap Growth

The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.

7. Pure Growth

The company is part of a strategy that selects companies from the S&P 500 Index, based on three growth factors: current internal growth rate, historical earnings per share (EPS) growth and historical sales/share growth.

8. Large-Cap Alpha Growth

Amphenol has been chosen as part of an alpha-seeking index that selects and weights growth stocks from the S&P 500 Growth Index. The proprietary methodology uses price appreciation — among more traditional factors — and weights the constituents based on their respective growth scores.

Recommendation

Buy Amphenol Corporation (APH) at market today and place your stop at $66.00.

If you want to play the options, I recommend the July $70 calls (APH170721C00070000), which last traded at $3.22 and expire on July 21.

Portfolio Update

You currently have three double-digit-percentage gainers in Apple Inc. (AAPL), Home Depot, Inc. (HD) and Altria Group (MO) with gains of 18.95%, 16.77% and 16.10%, respectively. Your current stops have you locked in for at least 15% gains in these positions.

Although the Alpha Algorithm portfolio may be getting a bit unwieldy, we are sticking to our exit strategy of either hitting our stops or selling a position if it falls below having at least five Alpha Algorithm investment strategies.