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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and 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 $6.3 billion in fiscal 2021, up 18% from fiscal 2020. The company generated 62% of revenues from markets outside the United States. 35% were derived from Asia-Pacific region in the fiscal 2021.
LSAG accounted for 45% of fiscal 2021 revenues (up 18% from fiscal 2020), DGG contributed 20% (which increased 24% from fiscal 2020) and ACG represented the remaining 35% (improving 16% from fiscal 2020).
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 June 2012 would be worth $3,377.81, or a 237.78% gain, as of June 3, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 226.81% and gold's return of 10.70% over the same time frame.
Looking ahead, analysts are expecting more upside for A.
Agilent’s fiscal second-quarter results were driven by continued strong growth in the pharmaceutical market. Also, solid momentum across all segments contributed well to the top line. Further, strength in Consumables, Spectroscopy, Liquid Chromatography and Mass Spectrometry benefited the results. Additionally, strength in NASD and genomics businesses supported Agilent’s quarterly performance. Further, solid momentum in the chemical & energy market remained a positive. Notably, the stock has outperformed the industry it belongs to on a year-to-date basis. However, lockdowns in China due to the coronavirus pandemic and the conflict in Ukraine remained headwinds. Also, mounting expenses related to research and development might hurt the company’s profitability. Further, softness in the instrument platforms remains a concern.
The stock is up 5.69% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2022. The consensus estimate has moved up as well.
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Agilent Technologies, Inc. (A) : Free Stock Analysis Report
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