Back to top

Bear of the Day

Zacks Equity Research

Bear of the Day: Agilent Tech (A)

A

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Agilent Technologies (A) is a broad-based OEM of test and measurement equipment. The company's fourth quarter earnings beat the Zacks Consensus Estimate, but uncertain macro conditions -- particularly in the U.S. and Europe -- and a softer-than-expected earnings guidance have increased concerns regarding near-term performance.

We are therefore downgrading Agilent shares from Neutral to Underperform. Agilent shares are trading at 13.3X trailing twelve months (TTM) earnings, which is toward the low end of the historical range and at a discount to the peer group. This seems to indicate that the shares are under-valued.

However, the 28% discount based on our earnings expectations for fiscal 2013 is much less than the 34% average discount to the peer group that it has been historically, indicating downside pressure. We are therefore issuing a price target of $38.00 (12.5X 2013 EPS).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%