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

Zacks Equity Research

Keysight (KEYS) closed at $90.82 in the latest trading session, marking a +0.08% move from the prior day. This change lagged the S&P 500's 0.74% gain on the day. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 1.11%.

Coming into today, shares of the electronic measurement technology company had gained 4.17% in the past month. In that same time, the Computer and Technology sector gained 4.95%, while the S&P 500 gained 3.18%.

Investors will be hoping for strength from KEYS as it approaches its next earnings release. 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.

Investors might also notice recent changes to analyst estimates for KEYS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. KEYS is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note KEYS's current valuation metrics, including its Forward P/E ratio of 21.45. This represents a premium compared to its industry's average Forward P/E of 19.28.

We can also see that KEYS currently has a PEG ratio of 2.15. 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. Electronics - Measuring Instruments stocks are, on average, holding a PEG ratio of 1.9 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 164, which puts it in the bottom 36% 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.

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