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Agilent Technologies stock underperforms despite optimism in near-term business performance

EditorHari Govind
Published 02/11/2023, 07:28
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
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Agilent Technologies (NYSE:A)' stock ended Thursday with a 0.49% decrease, closing at $102.86. This underperformance comes despite the S&P 500's gain of 1.05%, the Dow's 0.67% increase, and the Nasdaq's 1.64% rise on the same day. The past month has seen Agilent depreciate by 6.25%, a more significant loss compared to the Computer and Technology sector's 2.51% and the S&P 500's 2.21%.

Despite these recent challenges, analysts have revised their estimates positively for Agilent's near-term business performance. However, the company's forthcoming earnings report, due on November 20, 2023, is projected to show an EPS of $1.37 and revenue of $1.67 billion. These figures indicate year-on-year decreases of 10.46% and 9.65%, respectively.

The consensus EPS projection for Agilent has recently been adjusted downward by 0.05%.

In terms of valuation, Agilent's Forward P/E ratio stands at 19.1, suggesting a discount when compared to its industry's average Forward P/E of 24.31.

InvestingPro Insights

Agilent Technologies, with a market capitalization of $30.17 billion, has been operating with a high return on assets of 10.71% over the last twelve months as of Q3 2023 (InvestingPro Data). This is a positive indication of the company's ability to generate profit from its assets.

InvestingPro Tips suggest that Agilent's management has been aggressively buying back shares, which can be seen as a sign of confidence in the company's future prospects. Furthermore, the company yields a high return on invested capital, indicating efficient use of the company's resources.

The stock has been trading near its 52-week low, with a 1-year price total return of -23.42%. Despite this, the company's fair value according to InvestingPro stands at $115.21, suggesting potential for price appreciation.

In the realm of dividends, the company's dividend yield as of 2023 stands at 0.87%, with a growth of 7.14% over the last twelve months as of Q3 2023. This implies that strong earnings should allow management to continue dividend payments, providing an additional return to stockholders.

For more insights and tips, consider exploring the InvestingPro platform, which offers an extensive list of over 12 additional tips for Agilent Technologies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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