Narrowed focus spurs these stocks

Article Excerpt

In 2000, the old Hewlett-Packard spun off its testing equipment business (Agilent). Since then, Agilent has completed two spinoffs of its own: Verigy (in 2006), a maker of computer chip testing gear; and Keysight (in 2014), focused on products for testing electronic equipment. Like a significant number of spinoffs, Verigy attracted a takeover offer (in 2011). Keysight continues to trade, and we like its prospects. Still, for new buying right now, we prefer Agilent. AGILENT TECHNOLOGIES INC. $70 (New York symbol A; Manufacturing & Industry sector; Shares outstanding: 323.0 million; Market cap: $22.6 billion; Takeover Target Rating: Medium; Dividend yield: 0.9%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment, like mass spectrometers, for medical research laboratories and industrial clients. • Hewlett-Packard handed out all of shares in Agilent in 2000 • Agilent’s optical mouse sensor eliminated the need for mouse pads • In 2012, it paid $2.2 billion for Dako, a Danish firm that makes cancer detection equipment Agilent’s revenue rose 2.9%, from $6.8…