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Keysight Technologies, Inc. (KEYS) provides electronic design and test solutions to various industries, including energy, semiconductor, electronics, defense, and more. With a market cap of $27.1 billion, Keysight operates through Communications Solutions and Electronic Industrial Solutions segments.
The electronic measurement provider has underperformed the broader market over the past year. Despite rallying 19.2% over the past 52 weeks, KEYS lagged behind the S&P 500 Index’s ($SPX) 27% returns during the same time frame. In 2024, KEYS dipped 2.6% compared to SPX’s 18.1% gains on a YTD basis.
Zooming in further, KEYS also fell short of the S&P 500 Technology Sector SPDR’s (XLK) 32.8% returns over the past 52 weeks and 16.4% gains on a YTD basis.
Keysight Technologies has underperformed due to weak demand, particularly from wireless carriers and China, leading to revenue declines and pressured profit margins. However, the stock surged 13.9% following the release of its Q3 earnings on Aug. 20. The company reported sales of $1.22 billion and EPS of $1.42, both exceeding expectations. Additionally, the company provided stronger-than-expected guidance for Q4, further boosting investor confidence.
For the current fiscal year, ending in October, analysts expect Keysight's EPS to decline 30% year over year to $5.30. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in three of the past four quarters while missing on another occasion.
Among the 12 analysts covering the KEYS stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” two “Holds,” and one “Moderate Sell.”
This configuration is slightly more bullish than a month ago when seven analysts recommended “Strong Buys.”
On Aug. 22, Baird analyst Richard Eastman maintained a “Buy” rating on Keysight Technologies, setting a price target of $163.
KEYS’ mean price target of $167.27 represents a premium of only 7.9% from current price levels. The Street-high target of $185 indicates a potential upside of 19.3%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
