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

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Keysight (KEYS - Free Report) closed at $161.20 in the latest trading session, marking a +1.31% move from the prior day. This move outpaced the S&P 500's daily gain of 1.14%. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 0.04%.

Investors will be hoping for strength from Keysight as it approaches its next earnings release. In that report, analysts expect Keysight to post earnings of $1.99 per share. This would mark 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 recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 currently has a Zacks Rank of #3 (Hold).

Investors should also note Keysight's current valuation metrics, including its Forward P/E ratio of 21.29. For comparison, its industry has an average Forward P/E of 12.22, which means Keysight is trading at a premium to the group.

Investors should also note that KEYS has a PEG ratio of 1.93 right now. 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. The Electronics - Measuring Instruments was holding an average PEG ratio of 3.44 at yesterday's closing price.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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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