In the latest trading session, Keysight (KEYS - Free Report) closed at $85.20, marking a -0.79% move from the previous day. This move lagged the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.38%.
Heading into today, shares of the electronic measurement technology company had lost 4.63% over the past month, lagging the Computer and Technology sector's loss of 3.22% and the S&P 500's loss of 3.57% in that time.
KEYS will be looking to display strength as it nears its next earnings release, which is expected to be August 21, 2019. In that report, analysts expect KEYS to post earnings of $1.02 per share. This would mark year-over-year growth of 14.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, up 4.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.23 per share and revenue of $4.22 billion. These totals would mark changes of +30.56% and +8.81%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for KEYS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 #3 (Hold).
Valuation is also important, so investors should note that KEYS has a Forward P/E ratio of 20.3 right now. This represents a premium compared to its industry's average Forward P/E of 19.3.
It is also worth noting that KEYS currently has a PEG ratio of 2.03. 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. The Electronics - Measuring Instruments industry currently had an average PEG ratio of 2 as of yesterday's close.
The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.