Stock of the Day

March 20, 2020

Keysight Technologies (KEYS)

$161.79
+$1.96 (+1.2%)
Market Cap: $27.96B

About Keysight Technologies

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Communications Solutions Group and Electronic Industrial Solutions Group. It offers electronic design automation (EDA) software; instrument measurement software, instrument workflow software, and software testing; digital multimeter, phase noise measurement, power meters and power sensors, counters, LCR meters and impedance measurement products, and electrometers; and spectrum analyzers, network analyzers, logic analyzers, protocol analyzers and exercisers, bit error ratio testers, noise figure analyzers, AC and DC power analyzers, materials test equipment, device current waveform analyzers, and curve tracers. The company also provides waveform and function generators, arbitrary waveform generators, DC power supplies, and DC electronic loads; wireless drive test, radio access and core network test, wireless analyzers, wireless network emulators, and over-the-air test; application and threat intelligence, cloud test, cyber training simulator, network test hardware, synthetic traffic generators, protocol and load test, network security test, and network modeling; bypass switches, clock synchronization, cloud visibility, network and application monitoring, network packet brokers, and network taps; and application-specific test systems, photonic test and measurement products, and MMIC millimeter-wave and microwave devices. In addition, it offers product support, technical support, installation, training, engineering, and integration services. The company sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California.

Keysight Technologies Bull Case

Here are some ways that investors could benefit from investing in Keysight Technologies, Inc.:

  • The current stock price is around $147, which reflects a strong market position and potential for growth.
  • Keysight Technologies, Inc. reported a revenue increase of 7.4% year-over-year, indicating robust demand for its electronic design and test solutions.
  • The company has a solid net margin of 12.32%, showcasing its ability to convert revenue into profit effectively.
  • With a return on equity of 19.22%, Keysight Technologies, Inc. demonstrates efficient use of shareholders' equity to generate profits.
  • The firm maintains a healthy quick ratio of 2.27, suggesting it can easily meet its short-term liabilities, which is a positive indicator of financial stability.

Keysight Technologies Bear Case

Investors should be bearish about investing in Keysight Technologies, Inc. for these reasons:

  • The price-to-earnings (P/E) ratio is relatively high at 46.03, which may indicate that the stock is overvalued compared to its earnings.
  • The company has a beta of 1.10, suggesting that its stock price is slightly more volatile than the market, which could pose risks for conservative investors.
  • Despite recent revenue growth, the earnings per share (EPS) of $1.70 is only a slight increase from the previous year's $1.41, indicating potential stagnation in profit growth.
  • The debt-to-equity ratio of 0.35, while manageable, suggests that the company is using some leverage, which could be a concern if market conditions change.
  • Trading volumes have been below average recently, which may indicate reduced investor interest or liquidity issues in the stock.
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