In the latest trading session, Keysight (KEYS - Free Report) closed at $107.34, marking a -1.6% move from the previous day. This change lagged the S&P 500's daily gain of 0.05%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.11%.
Prior to today's trading, shares of the electronic measurement technology company had gained 12.41% over the past month. This has outpaced the Computer and Technology sector's gain of 4.89% and the S&P 500's gain of 4.32% in that time.
KEYS will be looking to display strength as it nears its next earnings release, which is expected to be November 26, 2019. In that report, analysts expect KEYS to post earnings of $1.19 per share. This would mark year-over-year growth of 17.82%. Meanwhile, our latest consensus estimate is calling for revenue of $1.10 billion, up 4.76% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for KEYS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KEYS is currently a Zacks Rank #3 (Hold).
In terms of valuation, KEYS is currently trading at a Forward P/E ratio of 22.25. Its industry sports an average Forward P/E of 20.3, so we one might conclude that KEYS is trading at a premium comparatively.
We can also see that KEYS currently has a PEG ratio of 2.22. 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. KEYS's industry had an average PEG ratio of 1.97 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 76, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.