Stock Analysis | Keysight Outlook - Mixed Signals Amid Expansion and Analyst Divergence

Market Snapshot

Stance: Keysight (KEYS) shows mixed signals with technical caution and strong institutional support. Overall trend: Weak technology, need to be cautious.

News Highlights

Recent news points to significant developments in the semiconductor and medical tech sectors that could indirectly affect Keysight:

• Texas Instruments Expansion: A $30B expansion in Sherman, Texas, includes a new wafer fabrication plant, which may indirectly boost demand for test and measurement equipment. Impact: Positive.
• EDS Detectors Market Growth: The EDS Detectors market is expected to grow at a CAGR of 8.2% through 2031, suggesting broader industry tailwinds. Impact: Neutral to positive.
• Collaboration with NVIDIA: Texas Instruments announced a partnership with NVIDIA to enhance AI data center power distribution. Impact: Positive.

Analyst Views & Fundamentals

Analyst Consensus:

• Average Rating Score: 3.50 (simple mean).
• Weighted Rating Score: 3.98 (historical performance-weighted).
• Rating Consistency: Ratings show some dispersion, with a "Buy" and a "Neutral" within the past 20 days.
• Price Trend Alignment: Current price is up 0.19%, matching the weighted expectations.

Key Fundamental Values and Scores:

• Annualized ROE: 16.10% (Internal diagnostic score: 5.94).
• Net Profit / Revenue: 16.36% (Score: 5.94).
• Annualized Net Profit Margin: 8.60% (Score: 5.94).
• ROE (Diluted): 7.78% (Score: 5.94).
• Current Assets Turnover Ratio: 0.54 (Score: 3.00).
• Net Cash Flow / Revenue: 33.10% (Score: 5.94).

Money-Flow Trends

Money flow for Keysight shows a nuanced picture:

• Overall Inflow Ratio: 49.58% (Internal diagnostic score: 7.76, "good").
• Big-Money vs. Retail: While large and extra-large investors show positive inflows, the overall trend is negative, likely due to retail investor caution.
• Block Inflow Ratio: 49.51% (negative trend).

Key Technical Signals

Technical analysis highlights both caution and potential for momentum:

• MACD Death Cross: Internal diagnostic score: 8.37. A strong bullish signal from this death cross reversal.
• WR Overbought: Score: 1. Indicates bearish pressure as the stock is overbought.
• Bearish Engulfing: Score: 4.69. Suggests a potential downward correction.
• MACD Golden Cross: Score: 6.23. A neutral-to-bullish signal recently.

Recent Indicators by Date:

• 20250819: Bearish Engulfing, MACD Death Cross, and Earnings Release Date all appeared, suggesting a mixed signal.
• 20250813: WR Overbought and MACD Golden Cross occurred, showing a balance between bearish and bullish momentum.

Key Insight: Technical indicators suggest a volatile market, with no clear direction. Traders should monitor for a breakout or breakdown in the near term.

Conclusion

Keysight is in a holding pattern, with strong fundamental values but mixed technical and flow signals. With internal diagnostic scores showing both caution and potential, investors may consider waiting for a pull-back or clearer technical direction before taking a larger position. Keep an eye on September earnings and any follow-up analyst comments for clarity.