In the latest trading session, Keysight (KEYS) closed at $94.45, marking a -0.17% move from the previous day. This move lagged the S&P 500's daily gain of 0.64%. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.6%.
Coming into today, shares of the electronic measurement technology company had lost 3.98% in the past month. In that same time, the Computer and Technology sector lost 1.05%, while the S&P 500 lost 1.87%.
Investors will be hoping for strength from KEYS as it approaches its next earnings release. The company is expected to report EPS of $1.19, up 17.82% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.10 billion, up 4.76% from the year-ago period.
KEYS's full-year Zacks Consensus Estimates are calling for earnings of $4.59 per share and revenue of $4.29 billion. These results would represent year-over-year changes of +41.67% and +10.5%, respectively.
Any recent changes to analyst estimates for KEYS should also be noted by investors. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. KEYS is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that KEYS has a Forward P/E ratio of 20.64 right now. For comparison, its industry has an average Forward P/E of 18.02, which means KEYS is trading at a premium to the group.
It is also worth noting that KEYS currently has a PEG ratio of 2.06. 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. The Electronics - Measuring Instruments industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% 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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