Highlighted Post-Market Laggard: Agilent Technologies (A)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Agilent Technologies ( A) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Agilent Technologies as such a stock due to the following factors:

  • A has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $113.1 million.
  • A is down 3.7% today from today's close.

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More details on A:

Agilent Technologies, Inc. provides bio-analytical and electronic measurement solutions and services to the life sciences, chemical analysis, diagnostics and genomics, communications, and electronics industries worldwide. The stock currently has a dividend yield of 1.3%. A has a PE ratio of 20.2. Currently there are 5 analysts that rate Agilent Technologies a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Agilent Technologies has been 2.8 million shares per day over the past 30 days. Agilent has a market cap of $13.8 billion and is part of the health care sector and health services industry. The stock has a beta of 0.87 and a short float of 1.1% with 1.24 days to cover. Shares are down 27.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Agilent Technologies as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • A's revenue growth trails the industry average of 25.4%. Since the same quarter one year prior, revenues slightly increased by 6.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, A has a quick ratio of 2.08, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for AGILENT TECHNOLOGIES INC is rather high; currently it is at 57.87%. A has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.32% trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Life Sciences Tools & Services industry average. The net income has decreased by 12.5% when compared to the same quarter one year ago, dropping from $168.00 million to $147.00 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Life Sciences Tools & Services industry and the overall market, AGILENT TECHNOLOGIES INC's return on equity is below that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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