Today we are going to look at Agilent Technolgies (A) to see if you should buy or avoid Agilent’s stock. In glancing at their chart it is in a very strong uptrend so lets see what the fundamentals look like as well. We will look at the 7 fundamental parameters I look to see if a stock can be considered a growth stock. Then we will take a look at the technical analysis side using the setups I have created and use for my trades. I have no plans to own Agilent Technologies in the next 72 hours and do not hold any positions in A.
Agilent Technologies (A): Should You Buy or Avoid Agilent’s Stock?
There are 7 fundamental markers I look for in a stock. I try to only purchase growth stocks so these are the parameters I look for to see if a stock meets the majority of the markers. I prefer to have all seven fulfilled. You can it more in depth here: https://evancarthey.com/how-to-scan-for-winning-stocks-an-insiders-view-to-my-process/
- Market Cap: > $300 million
- EPS growth past 5 years: >0%
- P/E: Over 10
- EPS growth next 5 years: >0%
- Sales growth past 5 years: Over 20%
- Debt/Equity: <0.1
- Sales growth qtr over qtr: Over 5%
Does the stock meet these 7 markers?
- Market Cap: 24.40B (YES)
- EPS growth past 5 years: 32.60% (YES)
- P/E: 21.39 YES
- EPS growth next 5 years: 10.65% (YES)
- Sales growth past 5 years: 4.80% (NO)
- Debt/Equity: 0.00 (YES)
- Sales growth qtr over qtr: 6.00% (YES)
I used Finviz.com for the fundamental analysis screener. With Agilent Technologies hitting only 6 of the 7 markers it is not a growth stock, but just barely. Agilent has a great Debt/Equity ratio at 0.0. ?The only negative marker was their sales growth over the past 5 years but it is still positive. This is a stock to keep an eye on and their performance over the past 3 years has been extremely strong.
Before I would trade just about any stock that fit my technical parameters. Unfortunately, I have had to learn the hard way that the fundamentals of a stock are just as important (if not more) than the technical setups.
Technical Analysis of Agilent Technologies
Agilent is currently in a short setup using the 50B setup. Price hit the 127.2% Fibonacci extension line around $55 to initiate the trade. I am using the weekly time-frame for this setup.
For the exit I use the Fibonacci retracement levels. If the current high holds then these are the exits. But if price continues to go up and doesn’t hit the exits then you would move the Fib retracement up with it that will move the exits up.
The 1st safer exit to use is the yellow line which is the 38% Fib retracement level at $56.40. But that doesn’t mean the retracement is over. The way I trade for this setup to be over the 50% Fib retracement level must be hit.
So the final exit right now from this move is the pink line at $49.04 which is just above the 50% Fib retracement line.
Agilent is also in a 38-127 long setup. You can see how price hit off of the 38% Fibonacci retracement level to initiate the trade. The current exit is the pink line at $87.61. The exits will move if the pink line is not hit and price continues to move down. Here would be the rest of the targets. But remember, if price completes one of these exits then the move is over and time to look for another setup.
- Entry @ $69.17 and exit @ $74.00
- Entry @ $65.60 and exit @ $71.15
- Entry @ $61.05 and exit @ $68.75 (this would be the final exit move, even if price continues to move lower you don’t have to move the exit anymore)
Popular Links
Here are a couple of links if you are looking at how I view the market and some trade setups. You can create your own trading style and setups. Quit paying losing traders to teach you. The only thing they teach is how to lose money.
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