Value
5.4/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 4.8 |
| P/S | 6.8 |
| EV/EBITDA | 0.5 |
| Fwd P/E | 6.5 |
| PEG | 6.3 |
| Analyst target | 6.0 |
- ▸Forward P/E: 19.8x
- ▸PEG: 1.18
A · Why this verdict
Why Agilent Technologies (A) is rated BUY WAIT
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictBUY WAIT
Overall score6.2/10
ConfidenceMEDIUM
MacroNEUTRAL
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
The business carries a wide economic moat and earns strong operating margins of 20%, corroborated by a perfect Piotroski F-Score of 9 out of 9 — characteristics consistent with durable competitive positioning and the ability to sustain above-average returns. Quality breakdown | Operating margins hold above 20% and the Piotroski F-Score remains at or near 9 out of 9 over the next four quarters, confirming the durability of the competitive position. | →Stable |
| CounterFree cash flow conversion sits at 66% relative to net income — below what a wide-moat franchise would typically convert — and if this gap widens, it could indicate that reported earnings overstate true economic profit, calling into question the moat's durability. | ||
With a forward P/E of 19.8x and a PEG of 1.28, the growth profile appears attractively priced for a business of this quality, offering approximately 10.5% headroom to the take-profit target with a favorable risk/reward. Valuation breakdown | Forward earnings estimates trend higher over the next 12 months, sustaining a PEG below 1.5x and supporting a re-rating toward the take-profit level near $144. | →Stable |
| CounterThe growth dimension carries no confirmed revenue or earnings growth rate in its data; if underlying growth fails to materialize, the PEG of 1.28 may rest on incomplete or optimistic forward estimates. | ||
Price momentum has weakened and failed its threshold, yet the stock remains above its 200-day moving average, suggesting the current technical pressure represents a near-term pause within an intact longer-term trend rather than a structural breakdown. Warnings | Price momentum recovers and the stock holds above the 200-day moving average support zone near $124 over the next two quarters, confirming the pause was temporary. | →Stable |
| CounterAn elevated put/call ratio of 2.85 signals that options participants are positioned defensively; if that bearish positioning materializes, the stock could break below the 200-day moving average, turning a temporary headwind into a more sustained decline. | ||
Analyst consensus projects approximately 23% upside to price targets, and the risk/reward stands at roughly 1.6-to-1 in favor of the long — a combination that is favorable even as the setup awaits a technical catalyst. Sentiment breakdown | The stock progresses toward the $144 take-profit level over 12 months as earnings delivery sustains analyst conviction and the consensus target holds or is revised higher. | →Stable |
| CounterThe haircutted take-profit sits only about 10.5% above current price; if analysts do not revise their targets meaningfully higher, the available risk-adjusted return may be insufficient to compensate for the ongoing volatility risk reflected in a put/call ratio of 2.85. | ||
The business carries a wide economic moat and earns strong operating margins of 20%, corroborated by a perfect Piotroski F-Score of 9 out of 9 — characteristics consistent with durable competitive positioning and the ability to sustain above-average returns.
→StableQuality breakdown
- Expectation
- Operating margins hold above 20% and the Piotroski F-Score remains at or near 9 out of 9 over the next four quarters, confirming the durability of the competitive position.
CounterFree cash flow conversion sits at 66% relative to net income — below what a wide-moat franchise would typically convert — and if this gap widens, it could indicate that reported earnings overstate true economic profit, calling into question the moat's durability.
With a forward P/E of 19.8x and a PEG of 1.28, the growth profile appears attractively priced for a business of this quality, offering approximately 10.5% headroom to the take-profit target with a favorable risk/reward.
→StableValuation breakdown
- Expectation
- Forward earnings estimates trend higher over the next 12 months, sustaining a PEG below 1.5x and supporting a re-rating toward the take-profit level near $144.
CounterThe growth dimension carries no confirmed revenue or earnings growth rate in its data; if underlying growth fails to materialize, the PEG of 1.28 may rest on incomplete or optimistic forward estimates.
Price momentum has weakened and failed its threshold, yet the stock remains above its 200-day moving average, suggesting the current technical pressure represents a near-term pause within an intact longer-term trend rather than a structural breakdown.
→StableWarnings
- Expectation
- Price momentum recovers and the stock holds above the 200-day moving average support zone near $124 over the next two quarters, confirming the pause was temporary.
CounterAn elevated put/call ratio of 2.85 signals that options participants are positioned defensively; if that bearish positioning materializes, the stock could break below the 200-day moving average, turning a temporary headwind into a more sustained decline.
Analyst consensus projects approximately 23% upside to price targets, and the risk/reward stands at roughly 1.6-to-1 in favor of the long — a combination that is favorable even as the setup awaits a technical catalyst.
→StableSentiment breakdown
- Expectation
- The stock progresses toward the $144 take-profit level over 12 months as earnings delivery sustains analyst conviction and the consensus target holds or is revised higher.
CounterThe haircutted take-profit sits only about 10.5% above current price; if analysts do not revise their targets meaningfully higher, the available risk-adjusted return may be insufficient to compensate for the ongoing volatility risk reflected in a put/call ratio of 2.85.
TrendMatrix Research · core thesis
Engine thesis — one sentence
Agilent Technologies is a high-quality franchise with a wide economic moat and strong margins, currently experiencing a near-term technical pause that has left growth priced attractively, with approximately 10.5% headroom to the take-profit target and a favorable risk/reward of roughly 1.6-to-1.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Per-dimension breakdown
Quality
7.6/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 7.1 |
| ROA | 5.7 |
| Gross margin | 6.5 |
| Op margin | 9.5 |
| Net margin | 9.8 |
| Current ratio | 7.3 |
| FCF quality | 5.1 |
| Moat | 7.6 |
| Piotroski F | 10.0 |
- ▸Strong margins: 20%
- ▸Earnings quality warning: 66% FCF/NI
- ▸Wide economic moat
- ▸Compounder quality: strong returns + growth
Growth
7.5/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 5.0 |
| EPS growth | 10.0 |
Momentum
4.8/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.5 |
| MACD | 0.0 |
| OBV | 10.0 |
| MA position | 6.0 |
| Volume | 2.5 |
- ▸Volume accumulation (rising OBV)
- ▸Above 200-day MA
Sentiment
7.7/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 7.8 |
| Analyst rating | 7.4 |
| Price target | 8.0 |
- ▸LLM news sentiment: +0.55 (n=1)
- ▸Analyst upside: 23%
Insider
5.0/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.1 |
- ▸Negligible insider selling — $216,672 (0.001% of mkt cap)
Peer rank
4.8/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 5.7 |
| quality rank | 8.5 |
| growth rank | 5.0 |
- ▸Best-in-class margins
Technical
5.6/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 5.2 |
| support resistance | 5.3 |
| 52w position | 6.4 |
Risk (lower is worse)
7.1/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 8.9 |
| days to cover | 8.7 |
| volatility | 5.1 |
| put call | 7.6 |
| implied vol | 5.7 |
| beta | 6.0 |
| debt equity | 8.0 |
Catalyst
5.1/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 5.6 |
| earnings timing | 5.0 |
| surprise avg | 3.2 |
| dividend safety | 7.0 |
| news activity | 5.0 |
- ▸Dividend: 78.0%
How the verdict was assembled
Engine trigger
Growth is cheap relative to earnings, but the technical setup has not yet produced a breakout above resistance (PEG 1.18, quality 7.6/10, growth 7.5/10).
Engine technical detail
verdict_path:
L4:PATH_C2_GARP_WAIT|ENTRY_STICKY:PRIOR_STILL_VIABLEPassed (7)
- MOMENTUM:4.8>=4.5
- ASYMMETRY:1.8>=1.5
- INSIDER:OK
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:52d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (0)
none
Warning (2)
- MOMENTUM:4.8<5.5 (soft — BUY_NOW allowed but watch)
- 8K_CSUITE_CHANGE:5.02 (officer departure/appointment)
Reward-to-Risk
1.77
Upside
+10.5%
Downside
5.9%
Sizing output
STARTER
SetupRange Bound — RSI 52 mid-range, Bollinger mid-band
EdgeNo clear edge — No clear edge identified
SuitabilityModerate — Balanced profile
Investment implication
The C-path quality+growth combination triggered the STRONG_BUY_WAIT verdict: quality 7.6 and growth 7.5 both clear their thresholds, with asymmetric R:R of 1.77 supporting the read.
The strongest dimensions are Sentiment at 7.7, Quality at 7.6, and Growth at 7.5; the weakest are Peer rank at 4.8, Momentum at 4.8, and Insider at 5.0. The V9 engine cleared all gates with 2 warnings, producing an asymmetric reward-to-risk of 1.77 and an engine sizing output of STARTER.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Wide Moat Quality Franchise
Trip ifOperating margin compresses below 15% for 2 consecutive quarters.
- P2Growth At Reasonable Price
Trip ifEPS surprise falls below 0% for 2 consecutive quarters.
- P3Momentum Weakness Temporary Headwind
Trip ifPrice falls below $124 and fails to reclaim that level for 2 consecutive months, signaling a structural breakdown rather than a near-term pause.
- P4Analyst Consensus Material Upside
Trip ifAnalyst consensus upside compresses below 5% from current 23% for 2 consecutive quarters.