Back to top

Image: Bigstock

Keysight (KEYS) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Keysight (KEYS - Free Report) closed at $95.40 in the latest trading session, marking a +0.77% move from the prior day. This change lagged the S&P 500's 1.13% gain on the day. Elsewhere, the Dow gained 1.68%, while the tech-heavy Nasdaq added 0.43%.

Coming into today, shares of the electronic measurement technology company had lost 6.06% in the past month. In that same time, the Computer and Technology sector gained 5.2%, while the S&P 500 gained 2.1%.

Wall Street will be looking for positivity from KEYS as it approaches its next earnings report date. This is expected to be February 24, 2020. On that day, KEYS is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 16.13%. Our most recent consensus estimate is calling for quarterly revenue of $1.06 billion, up 5.43% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.19 per share and revenue of $4.58 billion, which would represent changes of +9.96% and +6.36%, respectively, from the prior year.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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).

Looking at its valuation, KEYS is holding a Forward P/E ratio of 18.23. This valuation marks a discount compared to its industry's average Forward P/E of 18.3.

Investors should also note that KEYS has a PEG ratio of 2 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. KEYS's industry had an average PEG ratio of 1.64 as of yesterday's close.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Keysight Technologies Inc. (KEYS) - free report >>

Published in