Bullish on $KEYS Keysight Technologies is a company that helps other businesses create and test electronics systems. They do this by providing tools and solutions to industries like communications, networking, and electronics. The company is split into two main groups: Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG). The CSG group works with customers in areas like commercial communications, aerospace, and government, while the EISG group focuses on industries like automotive, energy, and consumer electronics. Keysight was founded back in 1937 by Bill Hewlett and Dave Packard, and is based in Santa Rosa, CA.
KEYS trade ideas
Keysight Technologies Sneaks HigherMany of the biggest technology names have struggled lately, but Keysight Technologies could be attempting a breakout.
The first pattern on today’s chart is the July 2023 peak of $172.72. The provider of network-testing equipment ended January making a new 52-week high above that level, which may suggest buyers are taking control.
Second, the 50-day simple moving average (SMA) had a “golden cross” above the 200-day SMA in October. That may reflect a longer-term uptrend.
Third, the 8-day-exponential moving average (EMA) is above the 21-day EMA and MACD is rising. Those signals may reflect a shorter-term uptrend.
Finally, bullish price gaps after the last two quarterly reports may reveal improving fundamentals.
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Keysight Technologies Inc. | Chart & Forecast SummaryKey Indicators on Trade Set Up In General
1. Push Set Up
2. Range Set up
3. Break & Retest Set Up
Notes On Session
# Keysight Technologies Inc.
- Wedge Structure | Supply Based Area
- WXY | Wave Y
- Head & Shoulders | Wedge Implemented
- Double Top | Awaiting Target
Active Sessions On Relevant Range & Elemented Probabilities;
London(Upwards) - NYC(Downwards)
Conclusion | Trade Plan Execution & Risk Management On Demand;
Overall Consensus | Neutral
How to open a Bullish Debit Call Spreads on ER play $KEYSWhy a Bullish Debit Call Spread?
A Bullish Debit Call Spread is an ideal strategy when you're confident about a moderate increase in the stock price but want to limit your risk. This involves buying a call option at a lower strike price and selling another call option at a higher strike price with the same expiration date. The net effect is a reduced upfront cost compared to buying a single call option, with the trade-off being a capped profit potential.
Setting Up the Trade:
Strike Price Selection:
Buy Call Option: Choose a strike price slightly above the current stock price of $KEYS. This is the level you expect the stock to reach or exceed after earnings.
Sell Call Option: Select a strike price above the one you bought, typically at a level where you believe the stock is less likely to move beyond post-earnings.
Expiration Date:
Opt for an expiration date that provides enough time for the earnings reaction to play out, typically the nearest monthly expiration after the earnings report.
Risk Management:
Max Loss: The maximum loss on this trade is limited to the net debit paid (the difference between the cost of the call bought and the call sold).
Max Profit: The maximum profit is the difference between the strike prices minus the net debit paid.
Break-Even Point: The stock price at expiration must exceed the lower strike price plus the net debit paid for the spread to start generating profit.
Profit Targets and Stop Loss:
Profit Target: Set a target to close the trade for profit if the stock moves favorably towards the higher strike price before expiration.
Stop Loss: Consider exiting the trade if the stock moves significantly against you, or if the thesis behind the trade (a strong earnings report) does not play out as expected.
Final Thoughts:
This strategy is well-suited for traders expecting a positive earnings surprise from NYSE:KEYS but who prefer to manage their risk with a defined maximum loss. By structuring the trade with a spread, you can participate in the potential upside while minimizing the premium paid.
KEYS potential Buy setupReasons for bullish bias:
- Price bounced from strong horizontal support
- Price gave a small consolidation breakout
- Price forming bullish pennant on weekly
- Bullish divergence
Here are the recommended trading levels:
Entry Level(CMP): 139.53
Stop Loss Level: 131.73
Take Profit Level 1: 147.33
Take Profit Level 2: Open
Keysight Technologies Reports Second Quarter 2024 ResultsKeysight Technologies ( NYSE:KEYS ), a California-based electronics equipment maker, has forecasted a third-quarter profit below estimates due to slow demand in the electronics industrial markets. Keysight ( NYSE:KEYS ) expects the third-quarter profit to be between $1.30 and $1.36 per share, below analysts' estimate of $1.45 per share. The company reported a 10% decline in second-quarter revenue in its communications solutions segment, which accounted for 67% of its total revenue in 2023. Revenue in its electronic industrial solutions segment fell 17% in the second quarter, reflecting continued constraints in semiconductor and manufacturing-related customer spending.
Keysight ( NYSE:KEYS ) earned $1.41 per share on an adjusted basis, compared with the LSEG estimate of $1.39 apiece. The company's second quarter financial summary showed revenue of $1.22 billion, compared to $1.39 billion in the second quarter of 2023. GAAP net income was $126 million, or $0.72 per share, compared to $283 million, or $1.58 per share, in the second quarter of 2023. Non-GAAP net income was $247 million, or $1.41 per share, compared to $380 million, or $2.12 per share in the second quarter of 2023. Cash flow from operations was $110 million, compared to $423 million last year, and free cash flow was $74 million, compared to $370 million in the second quarter of 2023.
Technical Outlook
Keysight ( NYSE:KEYS ) stock is down 3.75% in Tuesday's Pre-market trading which is an indication of a trend reversal due to the overbought nature of the stock currently trading with a Relative Strength Index (RSI) of 68.23
5/20/24 - $keys - uninteresting valuation for what you get-lower5/20/24 - vrockstar - NYSE:KEYS - not a short though i think my bias here is -ve all together. EPS that won't reach peak ('23) levels until a few years is a tough hurdle, especially at 20x. add to this 4% fcf yields which is fine, but not exceptional for this mediocre growth. at best this is an index tracker, and perhaps you have a more nuanced view on EPS - does seem like the bar is low-ish this Q. it's in the right (rising) tide, which helps, but i'd rather just own the fastest horses even at much more expensive valuations. i'm on the sidelines and probably not going to dip buy this either - regardless of the discount which keeps me uninterested in buying it to begin with. gl to the holders, curious if you have a more nuanced POV.
KEYS testing overhead resistance Keysight Technologies Inc. (KEYS) presently testing channel resistance, able to absorb weekly buying pressures into Q1.
From here, (KEYS) can gain bearish momentum and fall to recent support, eliciting losses of 20% over the following 2 - 3 months.
Inversely, a weekly settlement above channel resistance would place (KEYS) into a buy signal where gains of 20% - 30% would be expected over the following 2 - 3 months.
The key to success is to buy $KEYS NOW!!
Financial Breakdown:
1057% net income growth in 5 years 15% last year (Alpha Spread)
Current Ratio >1
Free Cash Flow Margin 22% and growing (AlphaSpread)
Consistent earnings growth and high future EPS estimates in short-term (Marketbeat)
Increasing cash and decreasing receivables
PE ratio makes it priced 93% cheaper than in the past 5 years
5.97 altman z-score and .38 D/E ratio
Time to buy NYSE:KEYS
$KEYS on Breakout WatchKeysight has earnings out of the way and while it shows a red volume week on earnings, it’s positive to me because it closed in the upper range of that weekly candle. It is right up against what looks like a resistance area for over a year, save the few weeks it made an all time high in Dec 2021. I’m looking for this to break above that resistance line and make a run for the ATH’s last December. (One could even see a Cup with Handle formation here and ready to break above that handle area). If you take this trade, make it your own by following your entry and risk rules. Ideas, not investing / trading advice.
Keysight Selected by NIO to Verify Connectivity in EV'sKeys has had a great run throughout the last 12 months but has been pulling back down to its previous support / resistance area where it will be interesting to see if it bounces or continues down.
I did spot that in todays news, NIO has announced that they will be using KEYS to help test various connectivity functions within their Electric Vehicles. NIO is a pretty pumped stock so I wonder if there will be any flow on affect across to KEYS when the news spreads wider.
One to watch.
12 month view