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Santa Rosa, California-based Keysight Technologies, Inc. (KEYS) offers electronic design and test software, instrumentation, systems, and related services used in the design, simulation, validation, manufacturing, installation, and optimization of communication systems in wireless, data center ecosystem, enterprise, and aerospace, defense, and government end markets. It is valued at a market cap of $59.4 billion.
This tech company has notably outperformed the broader market over the past 52 weeks. Shares of KEYS have soared 114.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 27.9%. Moreover, on a YTD basis, the stock is up 70.6%, compared to SPX’s 9.2% rise.
Narrowing the focus, KEYS has also significantly outpaced the State Street Technology Select Sector SPDR ETF’s (XLK) 57.3% rise over the past 52 weeks and 25.3% uptick on a YTD basis.
On May 19, KEYS shares surged 1.1% after delivering its Q2 results. KEYS delivered the strongest quarter in the company’s history, capping a record first half with all-time highs in orders, revenue, EPS, and free cash flow. The company’s revenue increased 31.5% year-over-year to $1.7 billion in the quarter, while its adjusted EPS of $2.87 advanced 68.8% from the year-ago quarter, topping analyst estimates of $2.33.
For the current fiscal year, ending in October, analysts expect KEYS’ EPS to grow 28.8% year over year to $7.91. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 13 analysts covering the stock, the consensus rating is a "Strong Buy," which is based on 11 “Strong Buy” and two "Hold” ratings.
The configuration is slightly more bullish than a month ago, with 10 analysts suggesting a “Strong Buy” rating.
On May 22, Truist maintained a "Hold" rating on KEYS and raised its price target to $376, indicating an 8.5% potential upside from the current levels.
The mean price target of $389.58 suggests a 12.4% premium to its current price levels, while its Street-high price target of $426 implies a 22.9% potential upside.
