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Keysight (KEYS) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Keysight (KEYS - Free Report) closed at $89.76, marking a +0.91% move from the previous day. This change outpaced the S&P 500's 0.23% gain on the day. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq lost 0.08%.

Heading into today, shares of the electronic measurement technology company had gained 5.44% over the past month, outpacing the Computer and Technology sector's gain of 5.16% and the S&P 500's gain of 3.84% in that time.

Wall Street will be looking for positivity from KEYS as it approaches its next earnings report date. The company is expected to report EPS of $1.02, up 14.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.04 billion, up 4.06% from the year-ago period.

KEYS's full-year Zacks Consensus Estimates are calling for earnings of $4.23 per share and revenue of $4.22 billion. These results would represent year-over-year changes of +30.56% and +8.81%, respectively.

Any recent changes to analyst estimates for KEYS should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KEYS is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, KEYS currently has a Forward P/E ratio of 21.03. This represents a premium compared to its industry's average Forward P/E of 19.23.

Also, we should mention that KEYS has a PEG ratio of 2.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics - Measuring Instruments stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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