Keysight (KEYS) closed at $88.22 in the latest trading session, marking a -1.34% move from the prior day. This move lagged the S&P 500's daily loss of 0.65%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Heading into today, shares of the electronic measurement technology company had gained 3.98% over the past month, lagging the Computer and Technology sector's gain of 5.63% and the S&P 500's gain of 4.11% in that time.
Investors will be hoping for strength from KEYS as it approaches its next earnings release. On that day, KEYS is projected to report earnings of $1.02 per share, which would represent 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.23 per share and revenue of $4.22 billion, which would represent changes of +30.56% and +8.81%, respectively, from the prior year.
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 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 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 currently has a Zacks Rank of #2 (Buy).
In terms of valuation, KEYS is currently trading at a Forward P/E ratio of 21.14. This represents a premium compared to its industry's average Forward P/E of 19.05.
It is also worth noting that KEYS currently has a PEG ratio of 2.11. 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. 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 group has a Zacks Industry Rank of 109, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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