How Is Keysight Technologies’ Stock Performance Compared to Other Tech Stocks?

Valued at a market cap of $26.9 billion, Keysight Technologies, Inc. (KEYS) specializes in electronic design and test solutions across diverse industries, including energy, semiconductors, electronics, and defense. Headquartered in Santa Rosa, California, the company operates through two key segments: Communications Solutions, which serves the wireless, aerospace, and networking markets, and Electronic Industrial Solutions, catering to automotive, IoT, and general electronics testing needs.

Companies worth $10 billion or more are generally described as "large-cap stocks," Keysight Technologies fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the scientific & technical instruments industry. 

The stock recently touched its 52-week high of $186.20 on Feb. 19 and is currently trading 16.7% below that peak. KEYS stock prices have plunged 5% over the past three months, compared to the Technology Select Sector SPDR Fund’s (XLK) 9.6% fall over the same time frame.

However, over the longer term, KEYS stock has gained 4.7% over the past six months and 3% over the past 52 weeks, surpassing XLK’s 4.1% decline in the past six months and 1.8% returns over the past year.

KEYS has traded below its 200-day moving average since late February but has climbed above the 50-day moving average recently.

On Feb. 25, Keysight reported first-quarter earnings, with revenue reaching $1.30 billion, marking a 3% year-over-year increase and beating the consensus estimate. Non-GAAP net income rose to $317 million or $1.82 per share, surpassing Wall Street expectations. The Communications Solutions Group led growth with a 5% revenue increase to $883 million, driven by strength in commercial communications, aerospace, defense, and government sectors. 

However, shares dropped nearly 7% in the next trading session, as Q1 orders of $1.26 billion fell below the consensus of $1.30 billion. Additionally, the company’s cautious Q2 guidance, projecting revenue between $1.27 billion and $1.29 billion with earnings per share of $1.61 to $1.67, fell short of analysts' expectations.

However, Keysight has underperformed its peer Trimble Inc.’s (TRMB) 20.7% gains over the past six months and a 10.9% surge over the past year.

Nevertheless, analysts remain highly optimistic about Keysight’s prospects. The stock has a consensus “Strong Buy” rating among the 11 analysts covering it. The mean price target of $185.80 represents a 19.8% premium to current price levels.