Agilent Technologies Inc.
A
$115.48
+0.82%
Agilent Technologies is a leading life science and diagnostic firm operating in the Medical - Diagnostics & Research industry. The company is a geographically diverse provider of measurement technologies, serving a broad base of customers across biopharmaceutical, chemical, and advanced materials end markets.…
A
Agilent Technologies Inc.
$115.48
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Investment Opinion: Should I buy A Today?
Based on a synthesis of the strong fundamentals, positive analyst sentiment, and deeply discounted technical price, the objective assessment leans toward a 'Buy' rating for patient, value-oriented investors. The current price near $114, which is 29% below its 52-week high and supported by a forward P/E of 17.3, presents a compelling entry point for a high-quality company. However, this view is contingent on the investor's ability to tolerate near-term volatility and a potentially extended period of base-building before a sustained recovery.
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A 12-Month Price Forecast
The data presents a mixed picture. While the company's underlying health is strong, the stock's price action is deeply concerning. The base case of a gradual recovery is most probable, but the high volatility (beta 1.31) and recent downtrend warrant caution. The risk/reward is becoming favorable for long-term holders, but timing the bottom remains difficult.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Agilent Technologies Inc.'s 12-month outlook, with a consensus price target around $150.12 and implied upside of +30.0% versus the current price.
Average Target
$150.12
10 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
10
covering this stock
Price Range
$92 - $150
Analyst target range
Wall Street analyst coverage for Agilent is active, with 10 analysts providing estimates. The consensus estimates for the company are an average EPS of $8.58 and average revenue of $9.26 billion. Recent institutional ratings from firms like Morgan Stanley, Barclays, and UBS are predominantly positive, with actions such as 'Overweight', 'Buy', and 'Outperform' indicating a bullish consensus view on the stock.
Bulls vs Bears: A Investment Factors
Agilent presents a classic value vs. momentum conflict. Fundamentally, it is a strong company with healthy finances, solid profitability, and a positive analyst outlook. However, the stock is in a severe technical downtrend, faces near-term earnings pressure, and trades at elevated valuation multiples despite the recent price decline. The current price appears to be discounting significant pessimism.
Bullish
- Strong Financial Position: Healthy current ratio of 1.96, low debt-to-equity of 0.50, and robust $993M free cash flow.
- Solid Profitability Metrics: High ROE of 19.33%, ROA of 8.53%, and consistent gross margin above 52%.
- Analyst Consensus Bullish: 10 analysts show positive consensus with Overweight/Buy ratings and average EPS target of $8.58.
- Strategic Acquisition for Growth: Recent Biocare Medical acquisition aims to accelerate growth in high-margin pathology market.
Bearish
- Pronounced Technical Downtrend: Stock down 17.8% over 6 months, 16.2% over 3 months, underperforming the market significantly.
- Sequential Profitability Pressure: Net income declined from $434M (Q4 2025) to $305M (Q1 2026); net margin compressed.
- Elevated Valuation Multiples: Trailing P/E of 31.79, P/B of 6.14, and EV/EBITDA of 23.43 are high relative to historical norms.
- High Beta and Volatility: Beta of 1.312 indicates higher volatility than market, contributing to steep -29.87% drawdown.
A Technical Analysis
The stock has been in a pronounced downtrend over the last six months, with the price declining 17.8% from its level in early October 2025. This negative momentum has accelerated recently, with the stock down 16.2% over the past three months and 6.1% over the past month, significantly underperforming the broader market as indicated by negative relative strength figures. Short-term performance shows continued weakness, with the stock closing at $113.98 on March 31, 2026, down from $136.07 at the end of December 2025. The price action in the provided data shows a steady decline from a peak near $157 in late November 2025 to the current levels, with only minor intermittent rallies. The current price of $113.98 is significantly closer to its 52-week low of $96.43 than its high of $160.27, trading approximately 29% below the yearly peak. The stock's beta of 1.312 indicates it has been more volatile than the market, which has contributed to its steep drawdown of -29.87%.
Beta
1.31
1.31x market volatility
Max Drawdown
-29.9%
Largest decline past year
52-Week Range
$96-$160
Price range past year
Annual Return
-0.4%
Cumulative gain past year
| Period | A Return | S&P 500 |
|---|---|---|
| 1m | -3.0% | -3.6% |
| 3m | -16.3% | -4.0% |
| 6m | -18.5% | -2.0% |
| 1y | -0.4% | +16.2% |
| ytd | -16.3% | -3.8% |
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A Fundamental Analysis
Revenue for the most recent quarter (Q1 2026) was $1.798 billion, representing a year-over-year growth of 6.96% compared to the same quarter last year. However, net income of $305 million and a net margin of 16.96% show a decline from the prior quarter's (Q4 2025) net income of $434 million and margin of 23.32%, indicating some pressure on profitability sequentially. The company maintains a strong financial position with a healthy current ratio of 1.96 and a manageable debt-to-equity ratio of 0.50. Free cash flow generation remains robust, with trailing twelve-month free cash flow reported at $993 million, providing ample liquidity for operations and shareholder returns. Operational efficiency metrics are solid, with a return on equity (ROE) of 19.33% and a return on assets (ROA) of 8.53%. The gross margin for the latest quarter was 52.61%, consistent with the company's historical performance, reflecting its pricing power and cost management.
Quarterly Revenue
$1.8B
2026-01
Revenue YoY Growth
+0.06%
YoY Comparison
Gross Margin
+0.52%
Latest Quarter
Free Cash Flow
$993000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is A Overvalued?
Given the company's positive net income, the primary valuation metric used is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is 31.79, while the forward P/E is 17.35, suggesting the market expects earnings growth. The forward P/E implies a more reasonable valuation based on future earnings projections. Other valuation multiples include a Price-to-Sales (P/S) ratio of 5.96 and an Enterprise Value-to-EBITDA (EV/EBITDA) ratio of 23.43. The Price-to-Book (P/B) ratio is elevated at 6.14, which is typical for a company with significant intangible assets and high returns on equity. Peer comparison data is not available in the provided inputs.
PE
31.8x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 16x~81x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
23.4x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risk is the continuation of the pronounced downtrend, driven by negative market sentiment and potential further earnings disappointments. The stock's high beta of 1.312 makes it susceptible to amplified swings if broader market volatility persists. Execution risk exists regarding the integration of the recent Biocare Medical acquisition, which, while strategically sound, could pressure margins in the near term. Financial risks are moderate, given the company's strong balance sheet with low debt and ample liquidity. However, valuation risk is elevated. Even after the decline, the trailing P/E of 31.8 and P/B of 6.1 are high, leaving the stock vulnerable to multiple compression if growth expectations are not met. The key risk is a failure to arrest the sequential decline in profitability seen in Q1 2026, which could validate bearish concerns and push the stock toward its 52-week low. Market and sector-specific risks include potential cuts in biopharmaceutical R&D spending, which is a core end-market for Agilent. Furthermore, the stock's significant underperformance relative to the S&P 500 over the past year (-18.5% relative strength) indicates it is out of favor, which can become a self-fulfilling prophecy as momentum investors exit.
FAQ
Key risks include: 1) Continuation of the severe price downtrend and high volatility (beta 1.31). 2) Further compression in profitability, as seen in the sequential drop from a 23.3% to a 17.0% net margin. 3) Execution risk related to the recent Biocare Medical acquisition. 4) Valuation risk if high multiples (P/E 31.8, EV/EBITDA 23.4) contract further.
The 12-month outlook is for a base-case trading range of $115 to $140, with a 50% probability. This is based on the stock stabilizing and growing in line with forward earnings estimates. A bullish case (30% probability) could see a rally to $140-$160 on positive catalysts, while a bear case (20% probability) could see a retest of the 52-week low near $96.
The valuation is mixed. Based on trailing earnings (P/E of 31.79) and book value (P/B of 6.14), the stock looks expensive. However, the forward P/E of 17.35, which prices in expected EPS growth to $8.58, suggests it is fairly valued or slightly undervalued relative to its growth prospects. The significant price decline has improved the valuation picture.
For value-oriented, long-term investors, A appears to be a good buy at current levels. The stock is trading 29% below its 52-week high, and its forward P/E of 17.35 is reasonable for a company with its profitability (19.33% ROE) and growth profile. However, given the pronounced downtrend and high beta of 1.31, it may be suitable for those who can tolerate near-term volatility.
A is more suitable for a long-term investment horizon (2+ years). The company's strong fundamentals (ROE 19.33%, robust FCF) support long-term value creation, but the severe short-term technical damage suggests it may take time to recover. The high volatility and negative momentum make it a challenging and risky short-term trade.