Yahoo Finance Should You Investigate Agilent Technologies, Inc. (NYSE:A) At US$73.47?
Let's talk about the popular Agilent Technologies, Inc. (NYSE:A). The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Agilent Technologies’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Agilent Technologies
What is Agilent Technologies worth?
According to my valuation model, Agilent Technologies seems to be fairly priced at around 16.16% above my intrinsic value, which means if you buy Agilent Technologies today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $63.25, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Agilent Technologies’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Agilent Technologies look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a negative profit growth of -3.8% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Agilent Technologies. This certainty tips the risk-return scale towards higher risk.
What this means for you:
Are you a shareholder? A seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on A for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on A should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Agilent Technologies. You can find everything you need to know about Agilent Technologies in the latest infographic research report. If you are no longer interested in Agilent Technologies, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
