Agilent technologies – A
Fundamental analysis
Agilent Technologies Inc. is a global leader in science, diagnostics and applied chemistry. Agilent’s complete solution offering includes instruments, software, services and expertise in clinical testing across multiple segments. The company was formed as a spin-off from Hewlett-Packard in 1999. Its NYSE ticker is «A». It currently employs more than 18,000 employees. The company diversifies its business into 6 sectors, which it calls: Pharmaceuticals, Education and Government, Diagnostics, Chemicals and Advanced Materials, Food, Environment and Forensics.
The results
Agilent continues to grow sales. It has increased sales by 6.8% over the past three months, and this is the next quarter to report growth. The turnover reached 1.72 billion USD. EPS increased 12% to $1.02 per share over the same quarter in 2022.
The revenue outlook for 2023 remains the same, i.e. around USD 7 billion.
After the current drop in the stock (probably under the influence of the results and their expectations), the price went below 120 USD per share. This improves economic ratios as they are now calculated from a lower share price.
PE of the company is 26.2 PE of the sector is 20.5. However, a higher PE may mean a higher investor interest in this stock, even at a higher price. The stock pays a stable dividend of $0.2 quarterly.
Technical analysis
According to moving averages, the company is in a downward trend due to recent events. The Volume shows a high number of shares traded at the time of the results announcement. This means a strong rearrangement of the positions of the big players (funds, banks, insurance companies, etc.).
RSI is below 30, a return above 30 may signal a buy signal. A bounce from support at $112 (which has held the share price for several months) supports a long position.
Conclusion
The stock is at low prices just after the release of quarterly results. A drop in price and a bounce from support at $112 may be an attractive long position price for some investors. The company’s results show stable growth and expectations.
On the other hand, it is necessary to take into account that the decline of the stock in the last few trading sessions is of a fundamental nature. Fundamentals always take precedence over technical analysis. If large investors perceive the stock as expensive, the price may fall further.
Resources:
https://seekingalpha.com/symbol/A
https://finance.yahoo.com/quote/A?p=A
https://www.investor.agilent.com/overview/default.aspx
https://s24.q4cdn.com/305549747/files/doc_financials/2023/q2/Q2-23-Financial-Information-Final.pdf
https://en.wikipedia.org/wiki/Agilent_Technologies
https://simplywall.st/stocks/us/pharma