Keysight Outlook - A Mixed Signal Amidst Strong Fundamentals and Diverging Analyst Views

Market Snapshot

Takeaway: Keysight (KEYS) is showing a 3.15% price rise, but technical indicators are weak and suggest caution, while fundamentals remain strong. Average analyst rating is "3.50", with a weighted rating of "3.38", indicating a mixed outlook.

News Highlights

Recent news includes significant developments in the semiconductor and tech sectors:

• Texas Instruments' $30B Sherman expansion is advancing, with associated mixed-use projects for employees, potentially boosting regional demand for Keysight’s tools in semiconductor testing.
• Apple’s Logic Pro update introduces new tools for music production, which could indirectly increase demand for Keysight's test and measurement equipment in audio hardware R&D.
• ECB’s statement on price stability indicates a readiness to use tools to maintain economic balance, which may indirectly affect global tech demand and capital availability.

Analyst Views & Fundamentals

Analysts show a mixed consensus with a simple average rating of 3.50 and a performance-weighted rating of 3.38. While ratings are consistent, they are not strongly aligned with the current price trend, which is up 3.15%.

Key Fundamental Values & Internal Scores

• Return on Equity (ROE): 16.10% – Internal diagnostic score: 7.18
• Return on Assets (ROA): 2.44% – Internal diagnostic score: 7.18
• Net Profit Margin: 16.36% – Internal diagnostic score: 7.18
• Price-to-Earnings (PE): 118.60 – Internal diagnostic score: 7.18
• Price-to-Sales (PS): 23.34 – Internal diagnostic score: 7.18
• Equity Multiplier: 1.92 – Internal diagnostic score: 7.18

The strong fundamentals indicate a solid business, but valuations are stretched, particularly with the high PE and PS ratios.

Money-Flow Trends

Money is flowing in at the institutional level. Large and extra-large investors are showing a positive overall trend, with 50.26% of inflow attributed to block investors. However, small investors are net outflow, with a 49.85% outflow ratio. This suggests that big money is cautiously optimistic, while retail traders are less so.

Key Technical Signals

The technical outlook is weak, with an internal diagnostic score of 3.29. Here's the breakdown:

• Williams %R Overbought – Internal diagnostic score: 1.14 (biases bearish; historically underperforms with a win rate of 39.47% and an average return of -0.57%)
• Marubozu White – Internal diagnostic score: 5.44 (neutral to bullish; historically performs moderately well with a 55.56% win rate and average return of 0.62%)

From 2025-09-03 to 2025-09-09, the Williams %R Overbought signal has been repeated multiple times, suggesting a potential overbought condition with limited upside. This aligns with the bearish technical bias.

Conclusion

Keysight is fundamentally strong with a high ROE and ROA, but the technical outlook remains weak and caution is warranted. While institutional flows are positive, the recent bearish indicators suggest volatility. Consider waiting for a pull-back before entering long positions, and monitor how the Williams %R Overbought condition resolves in the next week.