Today we're going to take a look at the well-established Agilent Technologies, Inc. (NYSE:A). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$143 at one point, and dropping to the lows of US$125. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Agilent Technologies' current trading price of US$137 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Agilent Technologies's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

What's The Opportunity In Agilent Technologies?

According to our valuation model, Agilent Technologies seems to be fairly priced at around 3.26% above our intrinsic value, which means if you buy Agilent Technologies today, you'd be paying a relatively fair price for it. And if you believe the company's true value is $132.87, then there isn't really any room for the share price grow beyond what it's currently trading. Although, there may be an opportunity to buy in the future. This is because Agilent Technologies's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of Agilent Technologies look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 7.5% expected over the next couple of years, growth doesn't seem like a key driver for a buy decision for Agilent Technologies, at least in the short term.

What This Means For You

Are you a shareholder? A's future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you've been keeping tabs on A, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So while earnings quality is important, it's equally important to consider the risks facing Agilent Technologies at this point in time. Case in point: We've spotted 1 warning sign for Agilent Technologies you should be aware of.

If you are no longer interested in Agilent Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.