For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Keysight (KEYS) ten years ago? It may not have been easy to hold on to KEYS for all that time, but if you did, how much would your investment be worth today?
Keysight's Business In-Depth
With that in mind, let's take a look at Keysight's main business drivers.
Based in Santa Rosa, CA, Keysight Technologies, Inc. is a provider of electronic design and test instrumentation systems. In 2013, Agilent Technologies announced that it will split into two independent companies. One of the companies was named Keysight Technologies, which became a fully independent electronic measurement company on Nov 1, 2014 and got listed on the New York Stock Exchange on Nov 3, 2014, with ticker symbol KEYS.
Keysight’s suite of connected car test solutions include Virtual Drive Test Toolset, which facilitates automakers to build virtual test routes in the lab by integrating network and channel emulation capabilities, and combining data captured in the field. Moreover, the company is evolving its expertise in software test automation capabilities.
Meanwhile, KeysightCare aids customers with end-to-end scalable support model solution loaded with robust test and measurement know-how to reduce time-to-market and enhance efficiency in a cost-effective manner.
Beginning first-quarter fiscal 2020, the company’s financial reporting comprises two segments — Electronic Industrial Solutions Group (EISG) and Communications Solutions Group (CSG). In fourth-quarter fiscal 2024, the company generated revenues of $1.29 billion.
Under CSG segment (69.3% of revenues in fourth-quarter fiscal 2024), the company offers radio frequency (RF) and microwave test instruments and allied software, and electronic design automation (EDA) software instruments, laser source products, optical amplifiers, and other software solutions.
The EISG segment (30.7%) offers test and measurement solutions across an array of electronic industrial end markets. It focuses on high-value applications in the automotive and energy industries and measurement solutions for consumer electronics, education, general electronics design and manufacturing, and semiconductor design and manufacturing. It also provides software and systems along with related services for use in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Keysight ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2015 would be worth $4,969.21, or a 396.92% gain, as of February 10, 2025. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 193.17% and gold's return of 122.76% over the same time frame.
Analysts are forecasting more upside for KEYS too.
Keysight is gaining traction from strong industry-wide growth backed by the solid adoption of its electronic design and test solutions. Steady investment in electromagnetic spectrum operations, radar and advanced communication systems is a tailwind. Its efforts in other emerging markets like the Internet of Things and high-speed data centers bode well for the top line. Management’s focus on automotive, energy, aerospace and defense domains augur well in the long haul. High demand for parametric wafer test solutions is supporting net sales in the Electronic Industrial Solutions Group. However, high dependency on contract manufacturing can make the company vulnerable to supply chain disruptions. Its frequent acquisitions have escalated integration risks. Backed by strong fundamentals, we are reiterating our Outperform recommendation.
Over the past four weeks, shares have rallied 8.07%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.Just Released: Zacks Top 10 Stocks for 2025
Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential.
Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
