Spinoffs reward patient investors

Article Excerpt

Spinoffs tends to take several years to pay off. A good example is Keysight—spun off by parent Agilent in November 2014. The new stock made little progress in its first five years, but shot up in late 2020 and hit a record high of $208 in late 2021. Even though Keysight moved down in 2022 with the overall market, it’s still up a whopping 510% since the split, while Agilent has gained 330%. We feel both can move even higher over the next few years. AGILENT TECHNOLOGIES INC. $154 is a buy. The company (New York symbol A; Manufacturing sector; Shares outstanding: 309.0 million; Market cap: $47.6 billion; Dividend yield: 0.6%; Takeover Target Rating: Medium; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients. Its equipment includes mass spectrometers, used to analyze substances. The COVID-19 pandemic continues to spur strong demand for Agilent equipment from pharmaceutical firms working on vaccines and treatments. Demand from chemical and food producers is also improving. In its fiscal 2022…