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California-based Keysight Technologies, Inc. (KEYS) is a leading provider of electronic design and test instrumentation systems, specializing in solutions for industries such as communications, aerospace, and automotive. Valued at a market cap of $27.1 billion, the company offers a wide range of products and services that enhance testing efficiency and reduce time-to-market for its customers.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Keysight Technologies fits this criterion perfectly. Keysight Technologies stands out in the market for its comprehensive suite of connected car test solutions, enabling virtual testing that combines real-world data with advanced emulation techniques.
The electronic measurement provider's stock, having reached a 52-week high of $162.51 in February, has pulled back 4.4% since then. Despite this, the stock has surged 14.2% over the past three months, outperforming the broader Dow Jones Industrials Average's ($DOWI) 8.2% return.
However, over the longer term, KEYS has declined 2.3% on a YTD basis, lagging behind DOWI's 11.5% increase. Additionally, KEYS’ shares have risen 16.9% over the past 52 weeks, compared to DOWI’s 21.8% returns during that period.
Yet, KEYS has shown a bullish price trend and maintained its position above its 50-day and 200-moving averages since mid-August.
Keysight Technologies' stock jumped 13.9% on Aug. 21 after the company reported stronger-than-expected Q3 sales of $1.2 billion and adjusted EPS of $1.57. The management's optimistic forward guidance projected Q4 sales between $1.2 billion and $1.3 billion, along with adjusted EPS of $1.53 to $1.59, which surpassed analyst forecasts. Additionally, management expects orders in the second half of the year to surpass those in the first half, anticipating a gradual demand recovery into 2025.
In comparison, KEYS stock has outperformed its rival ANSYS, Inc. (ANSS), with ANSS' 4.2% gain in the past 52 weeks and an 11.2% YTD dip.
Despite KEYS' underperformance relative to Dow Jones over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus “Moderate Buy” rating overall from the 12 analysts covering the stock, and it is currently trading below the mean price target of $169.
On the date of publication, Sohini Mondal 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.
