Their tighter focus is paying off

Article Excerpt

In 2014, Agilent, a long-time favourite of ours, spun off its electronics-testing business (Keysight) as a separate company. The move made sense, as it let Agilent focus on its main medical lab equipment business. Keysight has mostly stayed in a narrow range since the split, but a recent acquisition has helped push it up nearly 40% since the beginning of the year. The company is also in a strong position to profit from the rollout of new 5G wireless systems, and stands to gain as the U.S. and other countries increase their military spending. AGILENT TECHNOLOGIES INC. $79 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 317.5 million; Market cap: $25.1 billion; Price-to-sales ratio: 5.0; Dividend yield: 0.8%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment, like mass spectrometers, for medical research laboratories and industrial clients. In 2000, the old Hewlett-Packard handed out shares of its testing-equipment business (Agilent) to its own shareholders. Since then, the new company has…