KEYS Stock Analysis — Keysight Technologies
Sector: Tech hardware
AI Verdict
Keysight trades at a premium to hardware peers but the numbers say it's cheap for the growth on offer, provided its R&D customer moat keeps competitors at bay.
Competitive Moat
Keysight dominates in electronic measurement and test equipment for wireless, automotive, and aerospace, where its proprietary software and hardware integration creates high switching costs for R&D customers. Its deep domain expertise and long-standing relationships with top chipmakers and device OEMs make its position defensible.
Summary
Keysight's forward P/E of 35.0x with 67.0% expected EPS growth puts it in rare territory for hardware stocks.
Where It Stands
The stock is up 119.24% over the past year, trades at 35.0x forward earnings versus the sector median of 25x, and its RSI of 43.0 signals cooling momentum after a huge run.
Key Metrics
- RSI: 43 — Neutral
- Trailing P/E: 58.4x
- Forward P/E: 35.0x
- PEG Ratio: 0.85
- Earnings Growth: +0.7%
- Revenue Growth: +0.2%
- Market Cap: $60.8B
- 1-Year Return: 119.24%
- 52-Week High: $370.18
- 52-Week Low: $152.85
Analyst Consensus
16 Buy · 3 Hold · 0 Sell (19 analysts)
Bull Case
You're paying 35.0x next year's earnings for 67.0% EPS growth, which is cheap for the growth you're getting if Keysight's customer lock-in holds.
Bear Case
If the forward P/E falls from 35.0x to the sector median of 25x, that would mean a 29% hit to the multiple even if earnings deliver.
Catalyst to Watch
Watch for major customer wins or new product launches in high-growth verticals—either could justify the current growth expectations.