Is Keysight Technologies (KEYS) a “Strong Getting Stronger” Stock?
The London Company, an investment management company, released “The London Company Mid Cap Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. Q4 saw a remarkable broadening of market strength, with small and mid-cap companies posting robust increases. In Q4, the fund gained 12.9% (12.8, net) vs a 12.8% gain for the Russell Midcap Index. Positive stock selection boosted the fund's outperformance in the quarter, partly offset by headwinds from sector exposure. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
The London Company Mid Cap Strategy featured stocks such as Keysight Technologies, Inc. (NYSE:KEYS) in the fourth quarter 2023 investor letter. Headquartered in Santa Rosa, California, Keysight Technologies, Inc. (NYSE:KEYS) is an electronic design and test solutions provider. On February 7, 2024, Keysight Technologies, Inc. (NYSE:KEYS) stock closed at $158.14 per share. One-month return of Keysight Technologies, Inc. (NYSE:KEYS) was 3.98%, and its shares lost 13.36% of their value over the last 52 weeks. Keysight Technologies, Inc. (NYSE:KEYS) has a market capitalization of $27.622 billion.
The London Company Mid Cap Strategy stated the following regarding Keysight Technologies, Inc. (NYSE:KEYS) in its fourth quarter 2023 investor letter:
"Initiated: Keysight Technologies, Inc. (NYSE:KEYS) - KEYS is a dominant player in the electronic test and measurement industry. KEYS develops the tools that enable electrical engineers to analyze signals and assess the functionality of components and systems. Originating from Hewlett- Packard, KEYS became an independent entity in 2014, evolving into a market leader with a 25% share of its expansive total addressable market. On the road to higher speeds and greater connectivity, the tools provided by KEYS are indispensable for R&D. We view KEYS as a "strong getting stronger" story KEYS's vast scale, enduring relationships with major clients, and decades of R&D contribute to a formidable moat. KEYS is highly profitable with gross margin >60% and invests heavily to retain its superiority. KEYS boasts a strong, net-cash balance sheet and robust cash flow generation. Recent stock weakness, attributed to uncertainties in China and industry destocking, presented a compelling entry point to own this quality compounder."
A close-up view of a electronic medical device being tested in a pharmaceutical lab.
Keysight Technologies, Inc. (NYSE:KEYS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Keysight Technologies, Inc. (NYSE:KEYS) at the end of third quarter which was 41 in the previous quarter.
We discussed Keysight Technologies, Inc. (NYSE:KEYS) in another article and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
