In the latest trading session, Keysight (KEYS) closed at $103.43, marking a +0.91% move from the previous day. This move outpaced the S&P 500's daily gain of 0.29%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.19%.
Coming into today, shares of the electronic measurement technology company had gained 4.49% in the past month. In that same time, the Computer and Technology sector lost 0.13%, while the S&P 500 gained 0.32%.
KEYS will be looking to display strength as it nears its next earnings release. On that day, KEYS is projected to report earnings of $1.19 per share, which would represent 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.59 per share and revenue of $4.29 billion. These totals would mark changes of +41.67% and +10.5%, respectively, from last year.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KEYS currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, KEYS is holding a Forward P/E ratio of 22.36. For comparison, its industry has an average Forward P/E of 19.3, which means KEYS is trading at a premium to the group.
Meanwhile, KEYS's PEG ratio is currently 2.24. 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 1.93 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 3, putting it in the top 2% 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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