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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Agilent Technologies (A) ten years ago? It may not have been easy to hold on to A for all that time, but if you did, how much would your investment be worth today?
Agilent Technologies' Business In-Depth
With that in mind, let's take a look at Agilent Technologies' main business drivers.
Palo Alto, CA-based Agilent Technologies, Inc. was originally a spin-off from Hewlett-Packard. The company is an original equipment manufacturer (OEM) of a broad-based portfolio of test and measurement products serving multiple end markets.
On Nov 1, 2014, Agilent completed the spinoff of its electronic measurement segment into a new company named Keysight Technologies, making it an independent, publicly traded company.
Over the last three years, the company has diversified into new end markets, namely industrial, chemical and electronics markets. The company has three business segments, including Life Sciences & Applied Markets Group (LSAG), Diagnostics and Genomics Group (DGG) and Agilent Cross Lab Group (ACG).
The company uses a direct sales model for the distribution of its products, which is supplemented by distributors, resellers, manufacturers’ representatives, telesales and electronic commerce, as necessary.
Agilent reported revenues of $5.3 billion in fiscal 2020, up 3.4% from fiscal 2019. The company generated 71% of revenues from markets outside the United States. Almost 20% were derived from China, including Hong Kong.
LSAG accounted for 43% of fiscal 2020 revenues (down 3% from fiscal 2019), DGG contributed 20% (which increased 2% from fiscal 2019) and ACG represented the remaining 37% (improving 3% from fiscal 2019).
Most of the competition for these three segments comes from Bruker Corp., Danaher Corp, Affymetrix, GE Healthcare, Life Technologies Corp., Thermo Fisher Scientific, Waters Corp., Illumina, Inc., Life Technologies Corp., Abbott Laboratories, Sakura, Roche, Perkin Elmer Corp., Shimadzu Corp, Heidenhain Corp., Malvern Instruments, Seiko Instruments, Veeco Instruments and Zygo Corp.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Agilent Technologies a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2011 would be worth $4,367.58, or a 336.76% gain, as of August 13, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 278.42% and the price of gold increased -3.49% over the same time frame in comparison.
Going forward, analysts are expecting more upside for A.
Agilent is benefiting from expanding product portfolio and strength across end-markets. Further, growth in the LSAG segment is contributing well. Strength in Cell Analysis, Liquid Chromatography and Mass Spectrometry platforms remains a tailwind. Furthermore, growth in the pharmaceutical market on the back of solid momentum across both small and large molecule applications is a major positive. Additionally, growing momentum across ACG and DGG segments is driving the top-line growth further. Also, positive contributions from the acquisition of BioTek Instruments are other positives. The company’s focus on aligning investments toward more attractive growth avenues and innovative high-margin product launches is a positive. Notably, the stock has outperformed its industry on a year-to-date basis. However, COVID-19-led disruptions remain overhangs.
The stock has jumped 6.17% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2021; the consensus estimate has moved up as well.
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Agilent Technologies, Inc. (A) : Free Stock Analysis Report
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