Keysight Technologies, Inc.
KEYS
$291.24
+0.48%
Keysight Technologies is a leader in electronic testing and measurement within the hardware, equipment, and parts industry. The company is defined by its expertise in communications and its core advantage of helping customers accelerate product development and improve operational efficiency.…
KEYS
Keysight Technologies, Inc.
$291.24
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Investment Opinion: Should I buy KEYS Today?
Based on a synthesis of the strong growth trajectory, improving margins, and reasonable PEG valuation, the data supports a Hold rating for KEYS. The stock's fundamentals are sound, but its current price near the 52-week high and elevated absolute valuation multiples suggest limited near-term upside and heightened downside risk. Investors should await a more attractive entry point or clearer signs that the current growth premium is sustainable.
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KEYS 12-Month Price Forecast
The analysis yields a neutral stance due to the tension between excellent fundamentals and a price that appears to have front-run near-term positives. Confidence is medium given the clear data on growth and valuation, but the lack of a strong analyst consensus adds uncertainty.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Keysight Technologies, Inc.'s 12-month outlook, with a consensus price target around $378.61 and implied upside of +30.0% versus the current price.
Average Target
$378.61
4 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
4
covering this stock
Price Range
$233 - $379
Analyst target range
No sufficient analyst coverage available.
Bulls vs Bears: KEYS Investment Factors
Keysight presents a compelling growth story with strong fundamentals and strategic positioning, but its recent surge and high valuation multiples introduce significant risk. The stock's performance is highly dependent on sustaining its impressive revenue and margin expansion in a potentially volatile market.
Bullish
- Strong Revenue Growth: Q1 2026 revenue grew 23.3% YoY, showing robust demand.
- Improving Profitability: Net margin expanded to 17.6% from 13.0% a year ago.
- Solid Financial Health: Strong balance sheet with low debt (D/E 0.51) and high liquidity (Current Ratio 2.35).
- Attractive PEG Ratio: PEG ratio of 0.96 suggests reasonable valuation relative to growth.
Bearish
- High Valuation Multiples: Trailing P/E of 37.4 and P/S of 5.89 are elevated.
- Recent Price Volatility: Stock down 8.1% in 1 month, trading near 52-week high.
- Market Sensitivity: Beta of 1.14 implies higher volatility than the broader market.
- Cyclical Industry Exposure: Hardware/equipment sector is sensitive to economic downturns.
KEYS Technical Analysis
The stock has demonstrated a strong overall uptrend over the past six months, with a gain of 61.2% from the price of $175.16 on October 2, 2025, to the current price of $282.37. However, recent performance shows volatility, with a 1-month decline of 8.12% and a 3-month gain of 38.97%, significantly outperforming the S&P 500's respective declines of 5.25% and 4.63% over the same periods. The current price of $282.37 sits near the upper end of its 52-week range, which spans from $121.43 to $317.00, indicating the stock is trading at approximately 89% of its yearly high.
Beta
1.14
1.14x market volatility
Max Drawdown
-20.8%
Largest decline past year
52-Week Range
$121-$317
Price range past year
Annual Return
+92.0%
Cumulative gain past year
| Period | KEYS Return | S&P 500 |
|---|---|---|
| 1m | -3.7% | -3.6% |
| 3m | +41.0% | -4.0% |
| 6m | +68.0% | -2.0% |
| 1y | +92.0% | +16.2% |
| ytd | +41.0% | -3.8% |
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KEYS Fundamental Analysis
Revenue for the latest quarter (Q1 2026) was $1.60 billion, representing a 23.3% year-over-year growth from the same quarter a year prior. Net income for the quarter was $281 million, translating to a net margin of 17.6%, which is an improvement from the 13.0% margin in Q1 2025. The company maintains a healthy debt-to-equity ratio of 0.51 and a strong current ratio of 2.35, supported by robust free cash flow generation of $1.43 billion on a trailing twelve-month basis. Operational efficiency is solid, with a return on equity (ROE) of 14.4% and a return on assets (ROA) of 5.8%.
Quarterly Revenue
$1.6B
2026-01
Revenue YoY Growth
+0.23%
YoY Comparison
Gross Margin
+0.62%
Latest Quarter
Free Cash Flow
$1.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is KEYS Overvalued?
Given the company's positive net income, the primary valuation metric is the trailing P/E ratio, which stands at 37.4. This is complemented by a forward P/E of 27.5 and a PEG ratio of 0.96, suggesting the stock may be reasonably valued relative to its expected earnings growth. The price-to-sales (P/S) ratio is 5.89, and the enterprise value to sales (EV/Sales) is 8.64. Peer comparison data is not available in the provided inputs.
PE
37.4x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -88x~51x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
23.0x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risks for Keysight stem from its valuation and market cyclicality. The stock trades at a significant premium (P/E 37.4, P/S 5.89) after a 61% six-month surge, making it vulnerable to a correction if growth expectations falter. Its beta of 1.14 indicates it will likely experience amplified swings during broader market downturns, as evidenced by the recent 8% monthly drop amidst market weakness.
Operationally, while the company is financially healthy, its exposure to the hardware and communications testing sector ties its fortunes to capital expenditure cycles in technology, automotive, and industrial markets. A slowdown in these sectors could pressure revenue growth. Furthermore, the limited analyst coverage (only 4 analysts) reduces the depth of market consensus and can lead to higher price volatility based on company-specific news, such as the recent Cybeats partnership announcement.
FAQ
The key risks are valuation-based and cyclical. The stock's premium multiples (P/E 37.4) make it sensitive to any earnings disappointment or growth slowdown. As a hardware/equipment company with a beta of 1.14, it is exposed to economic cycles and may underperform if customer capital spending declines. Additionally, trading near its 52-week high ($317) after a major rally increases the risk of a sharp pullback if market sentiment sours.
The 12-month outlook is for consolidation with a neutral bias. The base case (55% probability) sees the stock trading between $260 and $300 as it digests recent gains. A bull case (25%) could see a retest of the $317 high and beyond if growth accelerates further. A bear case (20%) involves a pullback towards $200 if growth slows or the market de-rates high-multiple stocks. The AI assessment is neutral with medium confidence.
KEYS sends mixed valuation signals. It appears reasonably valued relative to its growth, indicated by a PEG ratio below 1.0 (0.96). However, on an absolute basis, its trailing P/E of 37.4 and Price/Sales of 5.89 are elevated, suggesting the market is pricing in continued high growth. The forward P/E of 27.5 offers a slightly more reasonable outlook. Overall, the stock is fairly valued to slightly overvalued, contingent on the company hitting its growth targets.
KEYS is a strong company, but may not be a good buy at current prices. Its fundamentals are excellent with 23% revenue growth and a PEG ratio of 0.96, suggesting growth is reasonably priced. However, the stock trades at a high trailing P/E of 37.4 and is near its 52-week high after a 61% surge, indicating much of the positive news may already be reflected in the price. A Hold rating is more appropriate until a better entry point emerges.
KEYS is more suitable for a long-term investor who can tolerate volatility. The company's strong market position, healthy financials (D/E 0.51, robust FCF), and exposure to secular trends like communications and security support a long-term growth story. However, short-term traders face significant risk due to the stock's high beta (1.14) and elevated valuation, which could lead to sharp swings unrelated to the company's fundamentals.