Could This Be Our Next Big Winner?

We’ve been on a roll over at Maximum Profit lately. 

Our system has identified a string of winners that my subscribers and I have been able to buy at just the right time as momentum carries the stock higher — while getting out before the tide washes out. 

A significant chunk of our winners has come from the tech space to be more specific, with gains of 39% on CyberArk Software (Nasdaq: CYBR), 66% on Roku (Nasdaq: ROKU), and 89% on Shopify (Nasdaq: SHOP).

This makes sense, of course. Tech has been one of the hottest sectors during this entire bull market. And if all goes according to plan, we’ll add another to the list in short order…

Our Next Big Winner…
Before companies can launch a new product, or even keep producing existing products, they need to continually test their design and optimization. After all, a failed product could cripple a company. But with technology rapidly changing, it would cost firms billions to continually update their testing and design equipment and software. 

That’s why most firms work with a company like Keysight Technologies (NYSE: KEYS).

#-ad_banner-#Keysight has been in the electronic measurement business since 1939. It offers electronic design, test and optimization across a wide range of industries, including communication, networking, aerospace, defense and government, automotive, energy, and semiconductors. It conducts business annually with more than 32,000 customers and has developed deep customer relationships.

Right now, the company is benefitting from a number of tailwinds. Likely the most significant is the highly anticipated 5G network. As companies build out their networks and devices, they will rely on Keysight’s expertise and testing solutions to ensure that their networks are running efficiently and are capable of dealing with the heavy traffic that will likely come with the use of 5G.

Other tailwinds include innovation in the automotive industry, including electric, hybrid, connected and autonomous vehicles. And, of course, there’s the rapidly evolving semiconductor industry that will continually need to test the latest and greatest chips to power the next generation of devices.

These catalysts helped Keysight pull in more than $3.8 billion in total revenue last year, a 21.6% increase over the prior year. This is significant because the company only grew sales by 9.3% and 2.2% in 2017 and 2016, respectively.

The real growth surprise has been the firm’s cash flow. In fiscal 2018 ended in October 2018, the firm grew cash flow by 77% over the prior year, grabbing $555 million in the process. That growth has continued. In its most recent quarter (ended July 31), it pulled in $274 million, compared with just $38 million in the same period a year ago. That sort of growth puts Keysight in the top 8% of all companies in terms of cash-flow growth.

Action to Take 
Should the company fail to successfully introduce new testing solutions, especially in the burgeoning areas of 5G and autonomous vehicles, that would adversely affect sales and profits.

But I see little sign of that happening right now. Keysight Technologies is a key player in all things electronic. It has massive catalysts that are propelling shares to new heights and those catalysts are still in their infancy stage, meaning there’s a long growth ramp ahead. Companies will rely on Keysight’s expertise and testing capabilities to ensure their products meet the needs and demands of their end-users.

Keysight recently showed a Maximum Profit score of 86, which means it’s a “buy” according to the rules of our system. My Maximum Profit readers and I added it to our portfolio just recently — but if history is any guide, we’ll add this to the list of our big-time tech stock wins very soon.

And when it’s time to sell Keysight, our system will tell us exactly when, allowing us to make bigger gains in less time, and while reducing risk. So if you’d like to know more about this powerful system and how it can work for you — not only with this pick, but others like it, too — watch this short video now.