In the latest trading session, Keysight (KEYS) closed at $101.37, marking a -0.42% move from the previous day. This change lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Prior to today's trading, shares of the electronic measurement technology company had lost 3.2% over the past month. This has lagged the Computer and Technology sector's gain of 7.03% and the S&P 500's gain of 3.88% 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 $1.08 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.
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 should also note any recent changes to analyst estimates for KEYS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KEYS is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, KEYS is holding a Forward P/E ratio of 19.61. Its industry sports an average Forward P/E of 18.64, so we one might conclude that KEYS is trading at a premium comparatively.
Meanwhile, KEYS's PEG ratio is currently 2.16. 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. Electronics - Measuring Instruments stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.
The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% 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.
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