Keysight adds a new niche

Article Excerpt

KEYSIGHT TECHNOLOGIES INC. $94 (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 188.2 million; Market cap: $17.7 billion; Price-to-sales ratio: 4.2; No dividends paid; TSINetwork Rating: Average; www.keysight. com) makes devices for testing electronic equipment. The company is now offering its automotive customers a way to guard against cyberattacks, in addition to testing hardware such as infotainment and engine control units. It plans to generate recurring revenues by selling this as a subscription service to protect those devices from the latest security threats. The stock trades at 22.2 times Keysight’s projected 2019 earnings of $4.23 a share. That’s a reasonable multiple, as the company spends a high 16% of its revenue on research. Keysight is a buy. buy. …

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