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Keysight (KEYS) Gains As Market Dips: What You Should Know

Zacks Equity Research

Keysight (KEYS) closed at $89.64 in the latest trading session, marking a +0.13% move from the prior day. This change outpaced the S&P 500's 0.9% loss on the day. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.79%.

Coming into today, shares of the electronic measurement technology company had lost 2.01% in the past month. In that same time, the Computer and Technology sector gained 3.21%, while the S&P 500 gained 1.52%.

KEYS will be looking to display strength as it nears its next earnings release, which is expected to be August 21, 2019. The company is expected to report EPS of $1.02, up 14.61% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.04 billion, up 4.06% from the prior-year quarter.

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.

Any recent changes to analyst estimates for KEYS should also be noted by investors. 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.

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 #3 (Hold) right now.

Valuation is also important, so investors should note that KEYS has a Forward P/E ratio of 21.16 right now. Its industry sports an average Forward P/E of 19.29, 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 2.12. 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 1.96 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 206, putting it in the bottom 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.

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