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California-based Agilent Technologies, Inc. (A) is an original equipment manufacturer of a broad-based portfolio of test and measurement products serving multiple end markets. Valued at a market cap of $40.8 billion, the company provides application-focused solutions primarily to the life sciences, diagnostics, and applied chemical markets and has now diversified into more end markets, namely industrial, chemical, and electronics.
Companies worth $10 billion or more are generally described as “large-cap” stocks and Agilent Technologies fits right into that category, with its market cap exceeding this threshold. The diagnostics and research company helps experts in 110 countries with cutting-edge life science research, patient diagnostics, and testing required to ensure the safety of water, food, and pharmaceuticals.
Despite its strengths, the company’s shares have slipped 9.1 from its 52-week high of $155.35 reached on May 17. Over the past three months, A has gained 1.8%, lagging behind the broader S&P 500 Index’s ($SPX) 9.5% gain.
Moreover, In the longer term, A has gained 9.5% over the past 52 weeks, significantly lagging behind SPX’s 31.6% returns. On a YTD basis, shares of A are up nearly 1.6%, massively underperforming SPX’s 27.6% gains over the same time frame.
To confirm its recent bullish trend, A has been trading above its 200-day moving average since early December and has remained above its 50-day moving average since late November.
On Nov. 25, Agilent’s shares increased marginally after reporting better-than-expected Q4 revenues of $1.7 billion and adjusted earnings of $1.46 per share. Its bottom line increased 5.8% annually while its revenue grew slightly from the year-ago figure, thanks to a 5% revenue growth in the company’s Agilent CrossLab Group, partially offset by a decline in Life Sciences and Applied Markets Group’s revenue.
A has surpassed its rival, Danaher Corporation’s (DHR) nearly 6.4% gain over the past 52 weeks but has lagged behind DHR’s almost 1.8% rise on a YTD basis.
Although A has recently underperformed the broader market, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 16 analysts covering it, and the mean price target of $149.21 suggests a 5.7% premium to its current levels.
