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Keysight (KEYS) Dips More Than Broader Markets: What You Should Know

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Keysight (KEYS - Free Report) closed at $153.78 in the latest trading session, marking a -1.42% move from the prior day. This change lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.24%.

Prior to today's trading, shares of the electronic measurement technology company had lost 7.34% over the past month. This has was narrower than the Computer and Technology sector's loss of 14.71% and the S&P 500's loss of 11.67% in that time.

Wall Street will be looking for positivity from Keysight as it approaches its next earnings report date. On that day, Keysight is projected to report earnings of $1.99 per share, which would represent year-over-year growth of 9.34%. Meanwhile, our latest consensus estimate is calling for revenue of $1.4 billion, up 8.21% from the prior-year quarter.

KEYS's full-year Zacks Consensus Estimates are calling for earnings of $7.48 per share and revenue of $5.38 billion. These results would represent year-over-year changes of +20.06% and +8.83%, respectively.

It is also important to note the recent changes to analyst estimates for Keysight. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Keysight is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Keysight has a Forward P/E ratio of 20.87 right now. This represents a premium compared to its industry's average Forward P/E of 11.99.

Also, we should mention that KEYS has a PEG ratio of 1.89. 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 3.37 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 9, which puts it in the top 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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