Keysight (KEYS) closed the most recent trading day at $103.16, moving -0.47% from the previous trading session. This change lagged the S&P 500’s daily of 0%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Coming into today, shares of the electronic measurement technology company had lost 4.06% in the past month. In that same time, the Computer and Technology sector gained 4.19%, while the S&P 500 gained 3.37%.
Investors will be hoping for strength from KEYS as it approaches its next earnings release. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, up 5.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.19 per share and revenue of $4.58 billion. These totals would mark changes of +9.96% and +6.36%, respectively, from last year.
Any recent changes to analyst estimates for KEYS should also be noted by investors. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.12% higher. KEYS is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, KEYS is holding a Forward P/E ratio of 19.96. This valuation marks a premium compared to its industry’s average Forward P/E of 19.86.
Investors should also note that KEYS has a PEG ratio of 2.19 right now. 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. The Electronics – Measuring Instruments industry currently had an average PEG ratio of 1.83 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 14, putting it in the top 6% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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