Broker recommendation 20230113:A

*One Stock Before the Bell*

*Agilent Technologies (NYSE: A)*
$156.49 (+4.57% YTD)

Agilent provides scientific testing equipment and analytical instruments to *6 different end markets*- food, pharma & biotech, environmental & forensics, diagnostics, chemical & energy, and research. *China's re-opening* could boost the firm's profitability, with *revenue from China* up by roughly 44% in Q4. Agilent provides investors with *defensive growth*, possessing an *attractive combination of solid growth, low debt, and ample cash flow*.

*Q4 EPS and revenue* grew by 26.45% YoY and 11.39% respectively, driven by strength in the Pharma and Chemical end markets. *Operating Margin* grew by 15.66% as production efficiencies and higher prices helped offset rising material costs. The firm has *beaten EPS estimates in 11 straight quarters*. The stock looks attractively valued at a *blended forward P/E ratio of 27.1x*, a *7% discount* to its 2Y average P/E.