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Keysight (KEYS) Dips More Than Broader Markets: What You Should Know

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Keysight (KEYS - Free Report) closed at $102.98 in the latest trading session, marking a -1.13% move from the prior day. This change lagged the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.93%.

Prior to today's trading, shares of the electronic measurement technology company had gained 0.49% over the past month. This has lagged the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 3.3% in that time.

Wall Street will be looking for positivity from KEYS as it approaches its next earnings report date. On that day, KEYS is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 16.13%. Meanwhile, our latest consensus estimate is calling for revenue of $1.06 billion, up 5.43% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.19 per share and revenue of $4.58 billion. These totals would mark changes of +9.96% and +6.36%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for KEYS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. KEYS is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, KEYS currently has a Forward P/E ratio of 20.06. Its industry sports an average Forward P/E of 20.23, so we one might conclude that KEYS is trading at a discount comparatively.

Also, we should mention that KEYS has a PEG ratio of 2.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Measuring Instruments was holding an average PEG ratio of 2.05 at yesterday's closing price.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 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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