Stock Analysis | Keysight Outlook - Mixed Signals and Strategic Moves

Market Snapshot

Takeaway: Keysight is in a volatile phase with a weak technical outlook, while fundamentals remain strong. Investors are advised to stay cautious and monitor key developments.

News Highlights

• Keysight Collaborates with NVIDIA: A recent partnership aims to revolutionize AI data center power distribution. This strategic move could boost Keysight’s position in the high-growth AI sector.
• EDS Detectors Market Growth: The EDS Detectors market is expected to expand at a CAGR of 8.2% by 2031. This could benefit Keysight as a player in related technology segments.
• Expansion of Semiconductor Wafer Fab Plants: Texas Instruments announced progress on its $30B expansion in Sherman, highlighting growing demand in the semiconductor industry. This could indirectly support Keysight’s industrial and automotive clients.

Analyst Views & Fundamentals

Keysight currently holds an average rating score of 3.50 and a weighted rating score of 3.98, based on the latest analyst ratings. While there is some consistency in the ratings (with a "Buy" and "Neutral" split), the simple mean indicates a cautious stance, while the performance-weighted score suggests slightly stronger optimism.

The current price has risen by 4.30% in the last month, aligning with the weighted analyst expectations, but not fully matching the bullish signal of the ratings. This suggests that while the fundamentals look good, market sentiment remains mixed.

Key Fundamental Factors and Their Internal Diagnostic Scores (0-10):

• Return on Equity (ROE): 7.78% — Internal diagnostic score: 4.00
• Return on Assets (ROA): 2.44% — Internal diagnostic score: 4.00
• Net Profit Margin: 16.36% — Internal diagnostic score: 4.00
• Equity Multiplier: 1.92 — Internal diagnostic score: 3.00
• Annualized Net Profit Margin on Total Assets: 8.60% — Internal diagnostic score: 4.00

The overall fundamental score is 7.31, reflecting strong profitability and capital efficiency, despite some leverage concerns.

Money-Flow Trends

Big-money investors remain cautiously optimistic. Large and extra-large capital inflows are trending in the positive direction, with an inflow ratio of 0.50 and 0.49, respectively. On the other hand, small and medium capital inflows are slightly negative, with a block inflow ratio of 0.49.

Our proprietary fund-flow score is 7.77 (internal diagnostic score 0-10), indicating a generally favorable money-flow pattern. This suggests that institutional investors are more confident than retail participants, who remain cautious or bearish in the short term.

Key Technical Signals

Keysight’s technical outlook is mixed, with conflicting signals from various indicators. The overall technical score is 4.95 (internal diagnostic score 0-10), indicating a weak technical position and a need for caution.

Key Indicators and Their Internal Strength:

• Williams %R Overbought: Internal diagnostic score: 1.00 — a bearish signal that suggests the stock may be overbought.
• Bearish Engulfing Pattern: Internal diagnostic score: 4.69 — a neutral-to-bullish pattern that adds ambiguity.
• MACD Death Cross: Internal diagnostic score: 8.37 — a strong bullish signal that suggests a reversal could be on the way.
• MACD Golden Cross: Internal diagnostic score: 6.23 — a neutral-to-bullish signal that reinforces the potential for a price rebound.

Recent Chart Patterns (Last 5 Days):

• 2025-08-13: Williams %R Overbought, MACD Golden Cross
• 2025-08-12: Williams %R Overbought
• 2025-08-25: MACD Golden Cross
• 2025-08-28: Williams %R Overbought
• 2025-08-19: Bearish Engulfing, MACD Death Cross, Earnings Release

The recent technical pattern shows a volatile and mixed market. Momentum is unclear, with a balance between bullish and bearish signals. Investors should closely monitor MACD signals and key earnings dates for clarity.

Conclusion

Keysight is in a phase of mixed signals across technical and fundamental indicators. With a fundamental score of 7.31 and a strong money-flow score of 7.77, the company's long-term fundamentals remain robust. However, the weak technical outlook and conflicting signals suggest a need for caution.

Actionable Takeaway: Consider waiting for a clearer trend to emerge, particularly after the upcoming earnings release and key technical signals like the MACD Golden Cross and Death Cross. In the meantime, investors should monitor both institutional sentiment and major technical indicators for signs of direction.