Why Agilent Technologies (A) Is a Strategic Buy for Growth-Oriented Portfolios

In the ever-evolving landscape of growth-oriented investing, Agilent Technologies (A) has emerged as a compelling opportunity, driven by a surge in institutional investor activity and a favorable shift in analyst sentiment. Recent data reveals a sharp increase in stakes held by key institutional players, coupled with upward revisions to price targets and robust earnings performance. For investors seeking exposure to a company with both short-term momentum and long-term potential, Agilent's current trajectory warrants serious consideration.

Institutional Investor Activity: A Vote of Confidence

The most striking evidence of Agilent's appeal lies in the actions of institutional investors. Prospera Financial Services Inc., for instance, bolstered its position in Agilent by 26.1% during the second quarter of 2025, adding 3,906 shares to its portfolio to hold a total of 18,845 shares, according to a MarketBeat filing. This move, disclosed in the firm's latest Form 13F filing, underscores confidence in Agilent's strategic direction and operational execution.

Meanwhile, Brighton Jones LLC has been even more aggressive. The firm increased its stake in Agilent by 89.5% in Q2 2025, acquiring 9,068 shares valued at approximately $1.07 million, according to a MarketBeat filing. This follows a further 6.1% increase in Q4 2025, bringing its total holdings to 4,663 shares, according to the same MarketBeat filing. Such concentrated buying by institutional investors-particularly in a sector as competitive as life sciences and diagnostics-signals a strong conviction in Agilent's ability to outperform broader market trends.

Analyst Price Target Revisions: A New Benchmark

Analysts have also recalibrated their expectations for Agilent, reflecting the company's recent performance and strategic initiatives. Barclays raised its price target from $125.00 to $150.00, while Evercore ISI and TD Cowen increased their targets to $140.00 and $162.00, respectively, according to a MarketBeat filing. The average price target now stands at $149.62, with a "Moderate Buy" consensus rating, according to the same MarketBeat filing.

This upward revision is not merely speculative. Agilent's FY2025 earnings guidance of $5.56–$5.59 per share, with Q4 guidance at $1.57–$1.60, aligns closely with its latest quarterly results (EPS of $1.37, matching estimates), according to the same MarketBeat filing. The company's revenue growth-up 10.1% year-over-year to $1.74 billion in Q3-further validates its ability to deliver consistent top-line expansion, according to the same MarketBeat filing.

Valuation Metrics: A Compelling PEG Ratio

Despite its recent gains, Agilent remains attractively valued relative to its growth prospects. The stock currently trades at a P/E ratio of 34.43, according to the MarketBeat filing, but its PEG ratio of 4.67 appears to overstate its valuation when compared to alternative calculations. For instance, using a PE ratio of 27.42 (excluding non-recurring items) and a 5-year EBITDA growth rate of 11.40%, the PEG ratio drops to 2.40, according to a GuruFocus term page. This discrepancy highlights the importance of context in valuation analysis: while 4.67 suggests overvaluation, 2.40 implies a more balanced relationship between price and growth.

Moreover, Agilent's 10-year average annual return of 14.58%-outpacing the broader market-positions it as a compounder with durable competitive advantages. For growth-oriented portfolios, the combination of a historically strong earnings trajectory and a PEG ratio that appears to be correcting toward a more attractive level makes Agilent a standout candidate.

Conclusion: A Strategic Buy for the Long-Term

Agilent Technologies' recent performance, supported by institutional buying and analyst optimism, paints a clear picture of a company in ascent. The 26.1% and 89.5% stake increases by Prospera and Brighton Jones, respectively, reflect a consensus among sophisticated investors that Agilent is well-positioned to capitalize on its core markets. Meanwhile, the upward revision of price targets and the company's consistent earnings growth provide a robust foundation for future appreciation.

For investors seeking a strategic buy, Agilent's current valuation-particularly when viewed through the lens of its PEG ratio-offers a compelling entry point. The stock's ability to balance growth with reasonable pricing makes it an ideal addition to portfolios focused on long-term compounding and sector-specific innovation.