Yahoo Finance Is Keysight Technologies's (NYSE:KEYS) Share Price Gain Of 225% Well Earned?
When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. For example, the Keysight Technologies, Inc. (NYSE:KEYS) share price has soared 225% in the last half decade. Most would be very happy with that. It's also good to see the share price up 11% over the last quarter.
See our latest analysis for Keysight Technologies
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Keysight Technologies's earnings per share are down 7.3% per year, despite strong share price performance over five years.
Essentially, it doesn't seem likely that investors are focused on EPS. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead.
On the other hand, Keysight Technologies's revenue is growing nicely, at a compound rate of 8.2% over the last five years. It's quite possible that management are prioritizing revenue growth over EPS growth at the moment.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
We know that Keysight Technologies has improved its bottom line lately, but what does the future have in store? This free report showing analyst forecasts should help you form a view on Keysight Technologies
A Different Perspective
It's good to see that Keysight Technologies has rewarded shareholders with a total shareholder return of 79% in the last twelve months. That gain is better than the annual TSR over five years, which is 27%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. If you would like to research Keysight Technologies in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
Of course Keysight Technologies may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
