Keysight Technologies’ Stock Performance: An In-Depth Review
Market performance has been a mixed bag for Keysight Technologies, Inc. (KEYS), despite its strong fundamentals and promising growth outlook.
With a market cap of $29.3 billion, Keysight Technologies is a top player in electronic design and testing solutions. Based in Santa Rosa, California, the company caters to various sectors, including communications, aerospace, automotive, and semiconductors. Keysight offers an array of sophisticated software, hardware tools, and support services designed to enhance testing and measurement processes.
Over the past 52 weeks, Keysight’s stock has lagged behind the broader market. While KEYS stock has increased 23.7%, the S&P 500 Index ($SPX) saw a boost of 31.8%. In the year 2024, KEYS shares are up nearly 6%, contrasting with SPX’s remarkable 25.8% increase year-to-date (YTD).
Additionally, Keysight Technologies has not kept pace with the Technology Select Sector SPDR Fund (XLK), which boasts a 25.5% return over the same period, and a 20.5% gain so far this year.
On November 19, shares of Keysight Technologies soared by 8.8% following the release of its stronger-than-expected Q4 earnings. The company reported adjusted earnings per share (EPS) of $1.65, alongside revenues of $1.3 billion. Key drivers for this performance included growth in commercial communications, buoyed by AI data center expansion and early research into 6G technology, as well as significant demand in aerospace and defense. The company also provided favorable guidance for Q1 of fiscal 2025, projecting an adjusted EPS range between $1.65 and $1.71.
For the ongoing fiscal year that ends in October 2025, analysts anticipate a year-over-year EPS increase of 18.2%, bringing it up to $6.43. As for Keysight’s track record with earnings surprises, it has had a varied history. The company exceeded consensus estimates in three of the last four quarters while falling short on one occasion.
Among the 11 analysts monitoring KEYS, the overall consensus rating stands as a “Strong Buy.” This assessment comprises eight “Strong Buy” recommendations, one “Moderate Buy,” one “Hold,” and one “Moderate Sell.”
On November 21, Barclays increased its price target for Keysight Technologies to $200, marking the highest target on the Street. The firm retains an “Overweight” rating, driven by Keysight’s recent fiscal Q4 performance, promising Q1 guidance, and management’s expectations of a 5% sales growth for fiscal 2025, suggesting a gradual recovery. From current price levels, this new target implies an upside potential of 18.6%. Currently, KEYS is trading below the average price target of $178.50.
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 for informational purposes only. For more details, please view the Barchart Disclosure Policy here. More news from Barchart
The views expressed in this article are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.
