In the latest trading session, Keysight (KEYS) closed at $83.34, marking a -0.8% move from the previous day. This change lagged the S&P 500's 0.25% gain on the day. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the electronic measurement technology company had lost 4.77% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.18% and the S&P 500's loss of 5.58% in that time.
KEYS will be looking to display strength as it nears its next earnings release, which is expected to be August 21, 2019. In that report, analysts expect KEYS to post earnings of $1.02 per share. This would mark year-over-year growth of 14.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, up 4.06% from the year-ago period.
KEYS's full-year Zacks Consensus Estimates are calling for earnings of $4.23 per share and revenue of $4.22 billion. These results would represent year-over-year changes of +30.56% and +8.81%, respectively.
Any recent changes to analyst estimates for KEYS should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 #3 (Hold).
In terms of valuation, KEYS is currently trading at a Forward P/E ratio of 19.86. For comparison, its industry has an average Forward P/E of 18.62, which means KEYS is trading at a premium to the group.
Also, we should mention that KEYS has a PEG ratio of 1.99. 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 1.94 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 161, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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