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

Zacks Equity Research

Keysight (KEYS) closed at $100.14 in the latest trading session, marking a -1.71% move from the prior day. This change lagged the S&P 500's 0.35% gain on the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.56%.

Heading into today, shares of the electronic measurement technology company had gained 1.1% over the past month, lagging the Computer and Technology sector's gain of 6.72% and the S&P 500's gain of 4.69% in that time.

Wall Street will be looking for positivity from KEYS as it approaches its next earnings report date. In that report, analysts expect KEYS to post earnings of $1.08 per share. This would mark year-over-year growth of 16.13%. Meanwhile, our latest consensus estimate is calling for revenue of $1.06 billion, up 5.43% from the prior-year quarter.

KEYS's full-year Zacks Consensus Estimates are calling for earnings of $5.19 per share and revenue of $4.58 billion. These results would represent year-over-year changes of +9.96% and +6.36%, respectively.

Investors might also notice recent changes to analyst estimates for KEYS. Recent revisions tend to reflect the latest 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 #1 (Strong Buy).

Looking at its valuation, KEYS is holding a Forward P/E ratio of 19.62. This represents a premium compared to its industry's average Forward P/E of 18.56.

It is also worth noting that KEYS currently has a PEG ratio of 2.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Electronics - Measuring Instruments stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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