Is Agilent Technologies Stock Underperforming the Dow?

Valued at a market cap of $34.2 billion, Agilent Technologies, Inc. (A) provides application focused solutions to the life sciences, diagnostics, and applied chemical markets. The Santa Clara, California-based company provides laboratories with instruments, software, services, consumables, and expertise, ranging from chromatography and mass spectrometry to genomics, diagnostics, cell analysis, and digital lab optimization.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and Agilent Technologies fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the diagnostics & research industry. The company’s key strengths lie in its strong R&D capabilities, global market presence, and diversified product portfolio. With a presence in over 100 countries, it combines scientific innovation with digital lab optimization to deliver high accuracy, efficiency, and reliability, making it a trusted partner for laboratories worldwide.

This healthcare company has slipped 21.7% from its 52-week high of $153.84, reached on Jan. 31. Shares of A have declined 1.1% over the past three months, underperforming the Dow Jones Industrial Average’s ($DOWI) 2.3% uptick during the same time frame.

In the longer term, Agilent Technologies has fallen 9.4% over the past 52 weeks, lagging behind DOWI’s 10.3% rise over the same time frame. Moreover, on a YTD basis, shares of A are down 10.3%, compared to DOWI’s marginal return. 

To confirm its bearish trend, A has been trading below its 200-day moving average since mid-February. However, it has remained above its 50-day moving average since mid-May, with slight fluctuations. 

On May 28, Agilent Technologies delivered better-than-expected Q2 performance, promoting its share price to rise 2.2% in the following trading session. The company’s revenue grew 6% year-over-year to $1.7 billion and topped the consensus estimates by 2.5%. This robust top-line growth was supported by stronger revenue from its life sciences and diagnostics markets, along with higher sales in its CrossLab group. Moreover, its adjusted EPS of $1.31 improved 7.4% from the year-ago quarter and exceeded analyst expectations by 4%. This solid Q2 performance can be largely attributed to A’s effective Ignite Transformation initiative.

Looking ahead to fiscal 2025, A expects revenue in the range of $6.7 billion to $6.8 billion, representing a 3.4% to 4.6% growth, and projects adjusted EPS to be between $5.54 and $5.61.

Agilent Technologies has outpaced its rival, Danaher Corporation (DHR), which declined 23.4% over the past 52 weeks and 11.7% on a YTD basis. 

Despite A’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 16 analysts covering it, and the mean price target of $137.50 suggests a 14.1% premium to its current price levels.