If You Invested $1000 in Agilent Technologies a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Agilent Technologies (A) ten years ago? It may not have been easy to hold on to A for all that time, but if you did, how much would your investment be worth today?
Agilent Technologies' Business In-Depth
With that in mind, let's take a look at Agilent Technologies' main business drivers.
Palo Alto, CA-based Agilent Technologies, Inc. was originally a spin-off from Hewlett-Packard. The company is an original equipment manufacturer (OEM) of a broad-based portfolio of test and measurement products serving multiple end markets.
On Nov 1, 2014, Agilent completed the spinoff of its electronic measurement segment into a new company named Keysight Technologies, making it an independent, publicly traded company.
Over the last three years, the company has diversified into new end markets, namely industrial, chemical and electronics markets. The company has three business segments, including Life Sciences & Applied Markets Group (LSAG), Diagnostics and Genomics Group (DGG) and Agilent Cross Lab Group (ACG).
The company uses a direct sales model for the distribution of its products, which is supplemented by distributors, resellers, manufacturers’ representatives, telesales and electronic commerce, as necessary.
Agilent reported revenues of $6.3 billion in fiscal 2021, up 18% from fiscal 2020. The company generated 62% of revenues from markets outside the United States. 35% were derived from Asia-Pacific region in the fiscal 2021.
LSAG accounted for 45% of fiscal 2021 revenues (up 18% from fiscal 2020), DGG contributed 20% (which increased 24% from fiscal 2020) and ACG represented the remaining 35% (improving 16% from fiscal 2020).
Most of the competition for these three segments comes from Bruker Corp., Danaher Corp, Affymetrix, GE Healthcare, Life Technologies Corp., Thermo Fisher Scientific, Waters Corp., Illumina, Inc., Life Technologies Corp., Abbott Laboratories, Sakura, Roche, Perkin Elmer Corp., Shimadzu Corp, Heidenhain Corp., Malvern Instruments, Seiko Instruments, Veeco Instruments and Zygo Corp.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Agilent Technologies a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2013 would be worth $3,613.17, or a gain of 261.32%, as of January 16, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 171.67% and the price of gold went up 9.90% over the same time frame.
Analysts are forecasting more upside for A too.
Agilent is benefiting from continued strong momentum in the pharma and applied markets. Additionally, strength in the Life Sciences & Applied Markets Group (LSAG) segment owing to growth in Liquid Chromatography and Mass Spectrometry instruments remains a major positive. Increase in service agreement attach rate is driving the Agilent Cross Lab Group (ACG) segment. Strength in NASD and Genomics portfolio is contributing well to the Diagnostics and Genomics Group (DGG) segment. We expect LSAG, ACG and DGG segments to grow 0.9%, 0.4% and 1.5% in fiscal 2023 from the year-ago reported figures. However, mounting expenses might hurt the company’s profitability. Our estimate suggests total costs and expenses to witness a year-over-year rise of 4.6% in fiscal 2023. The ongoing conflict in Ukraine remains an overhang as well.
The stock has jumped 5.10% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2023; the consensus estimate has moved up as well.
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