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Keysight (KEYS) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
In the latest trading session, Health Insurance Innovations (HIIQ) closed at $27.87, marking a +0.32% move from the previous day.

Keysight (KEYS) closed at $83.79 in the latest trading session, marking a +1.42% move from the prior day. This change outpaced the S&P 500's 0.8% gain on the day. At the same time, the Dow added 0.82%, and the tech-heavy Nasdaq gained 1.14%.

Coming into today, shares of the electronic measurement technology company had lost 9.9% in the past month. In that same time, the Computer and Technology sector lost 5.07%, while the S&P 500 lost 3.2%.

Wall Street will be looking for positivity from KEYS as it approaches its next earnings report date. This is expected to be May 29, 2019. On that day, KEYS is projected to report earnings of $0.98 per share, which would represent year-over-year growth of 18.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.07 billion, up 8.55% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.98 per share and revenue of $4.24 billion. These totals would mark changes of +22.84% and +9.34%, 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. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KEYS is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, KEYS currently has a Forward P/E ratio of 20.76. This valuation marks a premium compared to its industry's average Forward P/E of 12.91.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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