Is Keysight Technologies' stock trailing behind the Nasdaq's performance?
Keysight Technologies Struggles to Keep Pace with Nasdaq Technology Composite
In the dynamic world of tech stocks, Keysight Technologies, Inc. (KEYS) has been playing catch-up. The company, with a market cap of $29.5 billion, has underperformed the Nasdaq Technology Composite ($NASX) over the longer term.
While Keysight Technologies has managed a YTD gain of 7.1% and a 52-week gain of 15.1%, the Nasdaq Technology Composite surged 15.7% in 2025 and posted impressive 27% returns over the past year. The trend continued in the past three months, with the Nasdaq Technology Composite surging 13.4%, while Keysight Technologies lagged behind, gaining nearly 6%.
However, there are signs of recovery. Keysight Technologies touched its two-year high of $186.20 on Feb. 19, and despite a recent dip, it is currently trading 7.6% below this peak.
The company's Q3 results, released on Aug. 19, showed a mixed picture. Keysight's revenues for the quarter increased 11.1% year-over-year to $1.4 billion, surpassing the Street expectations by 2.9%. However, the company observed a notable contraction in adjusted net margin, leading to a much more modest 8% growth in adjusted net income to $297 million.
Despite this, analysts remain optimistic about Keysight Technologies. They note rising profits and revenues in the third quarter of 2025, with positive expectations for the fourth quarter. Although specific forecasts for Germany are not detailed in the available sources, the overall outlook is promising.
Keysight Technologies operates through two segments: Communications Solutions and Electronic Industrial Solutions. Its operations span the Americas, EMEA, and Indo-Pacific.
The company's stock has traded mostly above its 50-day and 200-day moving averages since early May, with some fluctuations. However, the trading session following the release of its Q3 results saw a drop of nearly 3%.
Analysts currently have a "Strong Buy" rating for Keysight Technologies, with a mean price target of $191, representing an 11% premium to current price levels. When compared to its peer, Trimble Inc.'s (TRMB) 14.5% gains in 2025 and 38.5% surge over the past 52 weeks, Keysight Technologies might seem to be lagging. But with its strong fundamentals and optimistic outlook, it could be a stock worth watching.
It's important to note that Aditya Sarawgi did not have positions in any of the securities mentioned in this article.
Disclosure: Aditya Sarawgi does not own any positions in the securities mentioned in this article.
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