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With a market cap of $29.3 billion, Keysight Technologies, Inc. (KEYS) is a leading provider of electronic design and test instrumentation solutions, serving industries such as communications, aerospace, automotive, and semiconductor. The Santa Rosa, California-based company offers advanced software and hardware tools, along with comprehensive support services to help optimize test and measurement processes.
Shares of the electronic measurement provider have underperformed the broader market over the past 52 weeks. KEYS stock has surged 23.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 31.8%. In 2024, shares of KEYS are up nearly 6%, compared to SPX's 25.8% gain on a YTD basis.
In addition, Keysight Technologies has lagged behind the Technology Select Sector SPDR Fund's (XLK) 25.5% return over the past 52 weeks and a 20.5% YTD gain.
Shares of Keysight Technologies jumped 8.8% following its stronger-than-expected Q4 earnings release on Nov. 19, with adjusted EPS of $1.65 and revenues of $1.3 billion. Strong performance in commercial communications, driven by AI data center expansion and early 6G research, and robust demand in aerospace and defense modernization efforts cushioned the top line. Additionally, positive Q1 fiscal 2025 guidance, with adjusted EPS expected to range between $1.65 and $1.71, boosted investor confidence.
For the current fiscal year, ending in October 2025, analysts expect KEYS' EPS to grow 18.2% year-over-year to $6.43. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 11 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” one “Hold,” and one “Moderate Sell.”
On Nov. 21, Barclays raised its price target for Keysight Technologies to $200 - the Street-high price target, maintaining an “Overweight“ rating on the stock. The firm's positive outlook follows Keysight's fiscal Q4 beat, strong Q1 guidance, and management's projection of a 5% sales growth in fiscal 2025 amid a "gradual recovery." This implies a potential upside of 18.6% from the current price levels. As of writing, KEYS is trading below the mean price target of $178.50.
