In the latest trading session, Keysight (KEYS) closed at $97.05, marking a +1.53% move from the previous day. This move outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.4%.
Prior to today's trading, shares of the electronic measurement technology company had lost 5.67% over the past month. This has lagged the Computer and Technology sector's gain of 0.51% and the S&P 500's loss of 0.14% in that time.
KEYS will be looking to display strength as it nears its next earnings release. In that report, analysts expect KEYS to post earnings of $1.19 per share. This would mark year-over-year growth of 17.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.10 billion, up 4.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.59 per share and revenue of $4.29 billion, which would represent changes of +41.67% and +10.5%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for KEYS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. KEYS is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, KEYS is currently trading at a Forward P/E ratio of 20.85. This valuation marks a premium compared to its industry's average Forward P/E of 18.08.
We can also see that KEYS currently has a PEG ratio of 2.08. 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. KEYS's industry had an average PEG ratio of 1.88 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 2, putting it in the top 1% 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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