Amphenol's Competitive Advantages Power Another Great Quarter, and Shares Are Still Undervalued

We maintain our $83 fair value estimate for Amphenol after the company reported stellar second-quarter results and guided for more strength in the third quarter. We are encouraged by Amphenol’s ability to report impressive results even as macroeconomic headwinds show signs of hampering peers, but we're not surprised. Exceptional operational consistency has become commonplace for the company, and we’ve grown accustomed to unflappable results across business cycles. We credit the firm’s decentralized model, variable cost structure, and diverse portfolio of differentiated technology for such consistently strong performance. These also inform our wide economic moat rating. We regard Amphenol as a stellar operator, and even with the shares up 6% after reporting, we see room to run and think investors still have an opportunity to get a blue-chip company at a discount.