Agilent Technologies ( A Quick Quote A - Free Report) is leaving no stone unturned to bolster its Diagnostics and Genomics Group (DGG) segment on the back of its strategic partnerships. This is evident from its latest distribution agreement with Hamamatsu Photonics K.K., which is well-known for whole slide imaging systems. Per the agreement, Hamamatsu’s NanoZoomer Slide scanner systems, including the S360MD Slide scanner system, will be integrated with Agilent’s digital pathology solutions to create a complete digital pathology workflow. This, in turn, will bolster the development of precision medicine. Moreover, the combination of solutions from both companies will enable pathology labs to improve patient health outcomes by bolstering diagnostic efficiency and quality with the help of precision medicines. Hence, the latest move is likely to drive Agilent’s momentum across pathologists. Growth Prospects
The Hamamatsu partnership is expected to expand Agilent’s footprint in the digital pathology space.
According to a report from Allied Market Research, the global digital pathology market is expected to hit $1.8 billion by 2030 at a CAGR of 9.3% between 2021 and 2030. Per a report from Grand View Research, the global digital pathology market is expected to witness a CAGR of 7.5% between 2022 and 2030. In addition, the latest move positions Agilent well to capitalize on the growth prospects present in the precision medicine market. A report from Mordor Intelligence states that the global market for precision medicine is expected to witness a CAGR of 9.2% between 2023 and 2028. We believe that Agilent’s growing footprint in these promising markets will help it win investors’ confidence in the days ahead. Coming to the price performance, Agilent has gained 7.2% over the past year, outperforming the industry’s growth of 4.5%. Expanding DGG Segment Offerings
The latest distribution agreement with Hamamatsu is in sync with the company’s growing efforts toward expanding its DGG segment.
Notably, the segment generated revenues of $342 million in first-quarter fiscal 2023. The figure accounted for 19% of total revenues and was up 1% year over year on a reported basis. Apart from the latest move, Agilent recently signed a multi-year distribution agreement with Proscia in a bid to deliver advanced digital diagnostic pathology solutions to pathologists. The agreement will help in accelerating data-driven precision medicine for pathologists, laboratories and patients. Further, Agilent received FDA approval for its Resolution ctDx FIRST as a companion diagnostic for identifying advanced non-small cell lung cancer patients with KRAS G12C mutations. Moreover, this helps the company to gain momentum in the genomic profiling industry, as ctDX FIRST utilizes a minimally invasive technique that is favored by 90% of individuals with cancer. We believe all these endeavors are likely to drive growth in the DGG segment in the near term. Zacks Rank & Stocks to Consider
Currently, Agilent carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks ( ANET Quick Quote ANET - Free Report) , Salesforce ( CRM Quick Quote CRM - Free Report) and Analog Devices ( ADI Quick Quote ADI - Free Report) . While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Arista Networks shares have gained 27.4% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%. Salesforce shares have lost 9.1% in the past year. CRM’s long-term earnings growth rate is currently projected at 16.75%. Analog Devices shares have gained 25.4% in the past year. The long-term earnings growth rate for ADI is currently projected at 12.25%.