Generation Investment Management’s Investment Thesis for Agilent Technologies (A)

Generation Investment Management, an investment management firm, released its “Global Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The impact of the trade war extends beyond immediate fluctuations in market averages. The new administration has also reversed the prevailing market narrative of 2024. While the firm remains focused on the assets that can compound through periods of volatility as well as in benign conditions. As of March 31, 2025, the Global Equity strategy had USD 22.3 billion in total assets under management. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Generation Investment Management Global Equity Strategy highlighted stocks such as Agilent Technologies, Inc. (NYSE:A). Agilent Technologies, Inc. (NYSE:A) is a technology company that offers application-focused solutions to the life sciences, diagnostics, and applied chemical markets. The one-month return of Agilent Technologies, Inc. (NYSE:A) was 4.28%, and its shares lost 13.14% of value over the past 52 weeks. On May 29, 2025, Agilent Technologies, Inc. (NYSE:A) closed at $113.28 per share, with a market capitalization of $32.164 billion.

Generation Investment Management Global Equity Strategy stated the following regarding Agilent Technologies, Inc. (NYSE:A) in its Q1 2025 investor letter:

“Agilent Technologies, Inc. (NYSE:A): At Generation, we believe that we are living through the age of biology. Our understanding of biological processes – and our ability to tweak them for the benefit of humanity – is improving rapidly. Medicine, and biology in general, is often considered the ‘youngest science.’ Agilent, an American company in the portfolio, is the latest company that backs this trend.

To uncover biology’s secrets, researchers need tools to ask the right questions, develop plausible hypotheses and then run the right experiments. These tools include instruments that can measure at scales previously considered impossible. A development in one domain can often lead to developments in another. For instance, a technique for detecting a chemical can find application in a pharmaceutical lab (e.g., to detect active pharmaceutical ingredients) or in regulation (e.g., to detect contamination in food) or even forensics. These positive ‘spillovers’ can have large positive sustainability effects.

The ecosystem of companies that provide these research tools is fertile hunting ground for Generation. We currently own four such businesses. The newest investment in this bucket is Agilent…” (Click here to read the full text)

Close up of a chemist in a lab coat holding a beaker, surrounded by sophisticated life science equipment.

Agilent Technologies, Inc. (NYSE:A) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Agilent Technologies, Inc. (NYSE:A) at the end of the first quarter, which was 55 in the previous quarter. Agilent Technologies, Inc. (NYSE: A) reported revenue of $1.681 billion, which represents a 1% increase over the same quarter in fiscal year 2024. While we acknowledge the potential of Agilent Technologies, Inc. (NYSE:A) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Agilent Technologies, Inc. (NYSE:A) and shared the list of best diagnostics stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.