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

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Keysight (KEYS - Free Report) closed at $163.52 in the latest trading session, marking a -0.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 1.31%, while the tech-heavy Nasdaq lost 0.14%.

Heading into today, shares of the electronic measurement technology company had gained 1.73% over the past month, outpacing the Computer and Technology sector's loss of 7.82% and the S&P 500's loss of 0.41% in that time.

Keysight will be looking to display strength as it nears its next earnings release, which is expected to be November 17, 2022. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $1.4 billion, up 8.21% from the year-ago period.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.4% lower. Keysight currently has a Zacks Rank of #4 (Sell).

Investors should also note Keysight's current valuation metrics, including its Forward P/E ratio of 20.31. Its industry sports an average Forward P/E of 16.21, so we one might conclude that Keysight is trading at a premium comparatively.

Also, we should mention that KEYS has a PEG ratio of 1.84. 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 group has a Zacks Industry Rank of 182, putting it in the bottom 28% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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