Is Keysight Technologies (KEYS) Stock a Buy For 2021?

Wedgewood Partners recently released its Q4 2020 Investor Letter, a copy of which you can download here. The Fund returned 12.2% for the fourth quarter of 2020. Meanwhile, the benchmark S&P 500 Index and the Russell 1000 Growth Index gained 12.2% and 11.4%, respectively. You should check out Wedgewood Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, Wedgewood Partners highlighted a few stocks and Keysight Technologies Inc. (NYSE:KEYS) is one of them. Keysight Technologies Inc. (NYSE:KEYS) manufactures electronics test and measurement equipment and software. In the last three months, Keysight Technologies Inc. (NYSE:KEYS) stock gained 39.1% and on January 14th it had a closing price of $147.03. Here is what Wedgewood Partners said:

“Keysight generated +20% adjusted earnings growth during the quarter on +9% growth in revenue as its high-margin software sales continue to grow at attractive, double-digit rates. Keysight’s hardware and software solutions are increasingly tailored to research and development departments working on cutting-edge technology standards, such as 800 gigabit Ethernet and various upcoming iterations of 5G for wireless. The Company is also positioned well to serve the automotive industry’s aggressive shift into electric vehicle (EV) and autonomous driving (AV) development. Keysight has not traditionally served the automotive industry to any great extent, prior to the EV and AV boom. However, Keysight sells laboratory solutions to help test protocols across the rapidly increasing ecosystem of EV and AV system and sub-system manufacturers. For example, during the quarter GM announced a $7 billion increase to its $20 billion AV and EV development budget. Keysight’s focus on this attractive end-market growth is underappreciated as the stock continues to trade at below-market earnings multiples. We think the Company’s superior profitability profile, combined with attractive and sustainable growth and undemanding forward earnings multiple, warrants a full position in the portfolio.”

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Wedgewood Partners has been a long time Keysight Technologies Inc. (NYSE:KEYS) bull. In April 2020, we shared Wedgewood Partners’ bullish Keysight Technologies Inc. (NYSE:KEYS) thesis in this article.

In Q3 2020, the number of bullish hedge fund positions on Keysight Technologies Inc. (NYSE:KEYS) stock decreased by about 23% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Keysight’s growth potential. Our calculations showed that Keysight Technologies Inc. (NYSE:KEYS) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

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