Is Keysight Technologies (KEYS) A Smart Long-Term Buy?

·2 min read

Wedgewood Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For calendar 2021, a portfolio net return of +32.1% was recorded by the fund, outperforming the S&P 500 Index that delivered a +28.7% return for the same period, and the +27.6% gain of the Russell 1000 Growth Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Wedgewood Partners, in its Q4 2021 investor letter, mentioned Keysight Technologies, Inc. (NYSE:KEYS) and discussed its stance on the firm. Keysight Technologies, Inc. is a Santa Rosa, California-based electronics company with a $33.0 billion market capitalization. KEYS delivered a -12.62% return since the beginning of the year, while its 12-month returns are up by 22.31%. The stock closed at $180.45 per share on January 19, 2022.

Here is what Wedgewood Partners has to say about Keysight Technologies, Inc. in its Q4 2021 investor letter:

"Keysight Technologies also contributed favorably to performance during the quarter. Revenues grew +6%, with adjusted operating earnings growing +11%. The Company’s revenue growth is likely slower than what it would have been otherwise were it not for chronic input shortages from non-company-controlled portions of their supply chain. This is evidenced in over +20% growth in orders that should help Keysight accelerate top-line growth over the next several quarters. In spite of this, we trimmed our holdings in Keysight and redeployed the proceeds into Taiwan Semiconductor which now trades at a discount to Keysight but should have a more sustainable pathway for growth."


Our calculations show that Keysight Technologies, Inc. (NYSE:KEYS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. KEYS was in 30 hedge fund portfolios at the end of the third quarter of 2021, compared to 32 funds in the previous quarter. Keysight Technologies, Inc. (NYSE:KEYS) delivered a 3.63% return in the past 3 months.

In October 2021, we also shared another hedge fund’s views on KEYS in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.