Shares of Keysight Technologies (NYSE:) have risen faster than the Technology Select Sector SPDR (XLK) so far this year.

It may still have some power. Therefore, I remain bullish. (See KEYS stock charts on TipRanks)

Based in Santa Rosa, California, Keysight Technologies focuses on electronics and radio, as it manufactures various technologies consisting of test solutions and measurement equipment. It also creates software products for its customers.

Q3 Results

In the third quarter of fiscal 2021, which ended on July 31, 2021, Keysight Technologies reported that it earned $1.25 billion in revenue, a 23% year-over-year increase. The total revenue exceeded analysts’ expectations by approximately $30 million.

This improvement was a result of the firm’s resilience to supply chain problems. The company closed the income statement at $1.54 per shares, exceeding the consensus average earnings by $0.10.

A Bright Future Ahead

The future has plenty of growth opportunities for Keysight, including 5G technology and the semiconductor industry. These markets are attracting billions of dollars from device makers and telecommunication service providers.

Next Move Strategy Consulting predicts that 5G technology’s market will reach $620 billion within 10 years. This is more than 100 percent higher than the current value.

According to Statista’s forecasts, the semiconductor market will reach $830 billion by 2024. This is an increase of almost 35% over four years.

Keysight scientists are also working on 5G alternatives.

Looking Ahead

The company expects revenue between $1.25 billion and $1.27 billion for Q4, ahead of analysts’ projections of $1.22 billion. The company expects fourth-quarter activity to result in adjusted earnings falling between $1.59 and $0.65 per share. Analysts forecast an average loss of $1.64.

Wall Street’s Take

In the past three months, seven Wall Street analysts have issued 12-month price targets for Keysight Technologies. It is estimated that Keysight Technologies’ average price target for KEYS is $181.57. This implies a 4.8% upside.

Analyst consensus ratings are Moderate Buy. They include four Buy, three Hold and zero Sell ratings.

Summary

Keysight’s skills of resilience against present supply chain issues are underestimated.

The company appears to be well-positioned than anticipated to take advantage of 5G’s strong tailwinds and the semiconductors’ strengths.

Disclosure: Alberto Abaterusso had no position at the time this article was published.

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