Stock Analysis | Keysight Outlook - Bearish Technicals Cloud a Mixed Market Picture

Market Snapshot

Headline: Keysight (KEYS) faces bearish technical signals despite mixed analyst views and positive fundamentals. Stance: Cautious.

News Highlights

Recent news involving Keysight includes developments across technology, finance, and industrial sectors:

• Apple Logic Pro App update: Apple launched new features for its Logic Pro app, which could indirectly affect Keysight's test and measurement tools used in software and audio production. The impact is likely minimal for Keysight but reflects broader tech innovation.
• Texas Instruments Expansion: A $30B expansion in Sherman, Texas, by Texas Instruments highlights strong demand in semiconductor manufacturing, a sector in which Keysight plays a role. While not directly tied to Keysight, the broader momentum may indirectly support Keysight's business.
• EDS Detectors Market Growth: The EDS Detectors market is projected to grow at 8.2% CAGR by 2031, a space where Keysight's tools could find use, particularly in industrial and scientific applications.

Analyst Views & Fundamentals

The recent analyst ratings for Keysight show a simple average score of 3.50 and a historically weighted score of 3.38, with ratings ranging between "Buy" and "Neutral." Despite a recent price rise of 0.62%, the analyst consensus remains broadly neutral, with one "Buy" and one "Neutral" rating from two active institutions.

Key Fundamental Factors

• Annualized ROE (%): 16.10% internal diagnostic score: 3
• Shareholders' Equity / Total Liabilities (%): 108.28% internal diagnostic score: 3
• Equity Multiplier: 192.35% internal diagnostic score: 3
• EV/EBIT: 85.50 internal diagnostic score: 2
• Total Profit (YoY Growth Rate %): 28.47% internal diagnostic score: 1

While the fundamentals show some strength (notably in ROE and debt ratios), the low scores for EV/EBIT and profit growth suggest some caution is warranted. The overall internal diagnostic score for fundamentals is 7.0 out of 10.

Money-Flow Trends

Recent fund-flow data shows a positive overall trend, with internal diagnostic score: 7.86 (good). The inflow ratios for different investor categories are:

• Small investors: 49.66% inflow ratio, but trend is negative.
• Medium and large investors: Inflow ratios range from 50.01% to 50.47%, with all showing positive trends.
• Block investors: 50.30% inflow ratio with a positive trend, indicating institutional or large-scale buying.

Overall, big money is showing interest in Keysight, but retail sentiment is mixed.

Key Technical Signals

The technical outlook for Keysight is bearish. Internal diagnostic score: 3.72 (weak).

Recent Technical Indicators

• WR Overbought: Score: 1 (very weak). This indicator suggests a strong bias toward bearish pressure.
• Marubozu White: Score: 3.93 (mildly bearish). This candlestick pattern signals a potential reversal or consolidation phase.
• MACD Golden Cross: Score: 6.23 (neutral to slightly bullish). This is the only positive signal among recent indicators.

Timeline of Technical Signals

• 2025-09-03: WR Overbought, Marubozu White
• 2025-09-04: WR Overbought
• 2025-09-05: WR Overbought

The repeated appearance of the WR Overbought signal suggests strong selling pressure and overbought conditions. With 2 bearish indicators and 0 bullish ones, the technical outlook is clearly on the weaker side.

Conclusion

While Keysight shows promising fundamentals and institutional support, the bearish technical signals and mixed analyst ratings suggest caution. Consider waiting for a pull-back or clearer bullish momentum before investing. Keep an eye on the WR Overbought conditions and the MACD Golden Cross for any potential reversal in the trend.