You can’t argue with this 95% gainer

Article Excerpt

It’s been a key part of our message on the value of spinoffs, and we never tire of repeating it for you: According to several academic studies, spinoffs benefit not only the new company but the former parent as well. A good example is Agilent, a long-time favourite of ours. In 2014, it, spun off its electronics-testing business (Keysight) as a separate company. That let Agilent focus on its main medical lab equipment business. Since the spinoff, Agilent has jumped 95% for investors, while Keysight is now up a whopping 195%. Even after those huge gains, we continue to recommend investors buy these stocks. Agilent investors stand to gain from rising use of the company’s products by both employers and police agencies to screen for opioids and other illicit drugs. Moreover, prominent activist investor Bill Ackman recently announced a small stake in the company. Keysight also continues to enjoy strong demand for its equipment as wireless carriers roll out their new, ultrafast 5G networks. AGILENT…