Agilant Technologies (A) continues to pressure its 52-week high on rising estimates, a compelling valuation relative to its peers and a bullish next-year estimate.
Company Description
Agilent Technologies, Inc. provides bio-analytical and electronic measurement solutions to a number of industries in the United States and internationally. The company was founded in 1999 and has a market cap of $11.92 billion.
First-Quarter Results
Agilant reported strong Q1 results on February 12 that helped shares kick off the current rally. Revenue for the period was up 4% from last year to $1.21 billion. Earnings came in at 38 cents, 19% ahead of the Zacks Consensus Estimate. The company has surprised in each of the last three quarters by an average of 30%.
Agilant noted that it saw strong growth in its Chemical Analysis segment, where revenue was up 13%, and in its Life Sciences segment, where revenue was up 10%. The company also noted that it continues to see strong growth out of Asia, where sales were up 20% from last year.
Agilant is also ahead of the curve with its operating margin coming in at 15%, a mid cycle read while the company is still in early cycle stages. Agilant ended the quarter with $1.2 billion in cash.
Valuation
Based on the current-year estimate, shares of A are trading with a forward P/E multiple of 20X, a slight premium to the overall market but a nice discount to the industry average of 30X.
The Chart
Shares of A have been trending higher for most of the last year, recently gaining momentum and hitting a new 52-week high at $34.87 on the strong Q1 results and an optimistic view on 2010. Take a look at the chart below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service. Zacks Investment Research
