Keysight Technologies Is Down 9%. What History Says

Keysight Technologies Is Down 9% in 60 Days. What History Says

Keysight Technologies, Inc. (KEYS) is now down 9% from its all-time high as of September 11, 2026, having just exited the yellow zone after approximately 60 days. The Drawdown Severity Score™ has improved to 1.9, placing the stock in the green zone. In 25 comparable prior drops of 5% or more, the stock took an average of 146 days to recover.

Keysight Technologies Exits the Yellow Zone

The movement of Keysight Technologies from the yellow zone to the green zone represents a measurable improvement in its risk profile. The yellow zone indicates elevated risk where drawdowns are deeper and more prolonged than historical averages. By moving into the green zone, the stock shows signs of stabilization. The Drawdown Severity Score™ now stands at 1.9, which characterizes the current risk level as slightly elevated.

This transition suggests that the intense selling pressure that characterized the previous phase has begun to dissipate, allowing the stock to enter a consolidation phase. While the green zone is a positive step, it is important to note that the stock remains in a drawdown and has not yet fully recovered. The stock has spent 62 days in this current drawdown cycle, during which it fell from its all-time high of $373.34 to its current price of $338.64. This price decline represents a drawdown of -9.3%.

Current Position and Drawdown Severity Score™ Context

The Drawdown Severity Score™ is our proprietary metric designed to gauge the intensity of an asset's price decline. The scale ranges from 0.0, indicating no drawdown, to 10.0, representing the most severe historical sell-off. A score of 1.9 indicates that while the stock is still trading below its peak, the severity of the current decline has moderated. This score is calculated by analyzing both the depth of the current drop and the time elapsed since the peak, comparing these factors against the asset's entire trading history.

To put this in perspective, our data shows that the current drawdown of -9.3% is deeper than the average historical pullback for Keysight Technologies. Across all 98 historical drawdown events recorded in our database, the average maximum drawdown is -4.5%. Furthermore, the current duration of 62 days exceeds the historical average drawdown duration of 41 days. This means the current event is both deeper and longer-lasting than the typical pullback experienced by the stock, indicating a correction that is more than double the historical average depth.

The fact that the current event is deeper and longer than the historical average explains why the stock previously entered the yellow zone. The recent improvement in the severity score suggests that the rate of decline has slowed, allowing the stock to transition to the green zone.

Historical Comparison of Keysight Technologies Drawdowns

To understand how this drawdown might continue to unfold, we must examine comparable events in the stock's history. While the average drawdown across all 98 events is -4.5%, many of these were minor pullbacks that resolved quickly. These minor fluctuations represent standard market noise and do not typically signal a change in the stock's medium-term trend. To find meaningful comparisons that reflect structural shifts in investor sentiment, we filter our data for drawdowns that crossed the 5% threshold.

Our database shows that Keysight Technologies has experienced a drawdown of 5% or more exactly 25 times. For these 25 comparable drops, the average duration to fully recover to previous highs was 146 days. This is more than three times longer than the 41-day average for all drawdown events, demonstrating that deeper pullbacks require a much longer period of consolidation and recovery.

This historical comparison indicates that once Keysight Technologies enters a drawdown exceeding 5%, the recovery process is typically measured in months rather than weeks. At 62 days into the current drawdown, the stock has been falling or consolidating for less than half the average recovery time of 146 days seen in prior comparable drops.

The Recovery Curve: Analyzing the 10.25% Climb

A critical aspect of drawdown analysis is the mathematical asymmetry of recoveries. When a stock falls by a certain percentage, it requires a larger percentage gain to return to its previous peak. This occurs because the loss reduces the capital base from which future gains are calculated.

For Keysight Technologies, the current drawdown of -9.3% from the all-time high of $373.34 means the stock is trading at $338.64. To climb back to its peak, the stock must rise by exactly 10.25%. This required gain is a direct result of the math of drawdowns, where the recovery percentage must always exceed the loss percentage. At -9.3%, Keysight Technologies is at a level where the recovery hurdle is still relatively modest compared to deeper bear market declines, but it still represents an upward climb of 10.25% that requires sustained buying pressure.

Our data shows that in the 25 historical instances where Keysight Technologies dropped by 5% or more, the stock eventually achieved the required gains to mark a full recovery. However, the average duration of 146 days highlights that these recoveries require patience. The current duration of 62 days suggests that the stock is still navigating the typical timeline for deeper pullbacks.

Valuation Context and Historical Multiples

As of the valuation snapshot date of 2026-09-09, the price drawdown contrasts sharply with the asset's historical valuation multiples. The Price-to-Sales (P/S) ratio stands at 8.8, placing it in the 96th percentile of its own daily P/S record since 2014-10-20, well above its historical median of 4.5. Similarly, the EV-to-EBITDA (EV/EBITDA) ratio is 36.7, which sits in the 88th percentile of its own daily history since 2014-10-20, compared to its historical median of 19.5. This data shows that despite the -9.3% price decline from its all-time high, the stock's valuation multiples remain historically high relative to its own past trading record.

This valuation context is an important risk factor to consider alongside price action. Although the price has declined by -9.3%, the multiples used to value the business are still near the upper end of their historical ranges. A high percentile rank indicates that the asset is trading at a premium relative to its own history, even after the recent price correction.

Limits of This Price-Based Drawdown Analysis

This analysis is strictly quantitative and relies on historical price, drawdown, and valuation data. It does not incorporate fundamental shifts, industry-wide macroeconomic trends, or corporate earnings updates that may influence future performance. The purpose of this data is to provide historical context on how prior pullbacks of similar magnitude resolved.

Our analysis uses price and drawdown history only. By focusing strictly on these quantitative metrics, we eliminate emotional bias and narrative-driven assumptions, providing a clear, historical benchmark for the stock's current behavior. However, this approach also means we do not account for external variables. Past performance does not guarantee future results, and historical recovery timelines represent averages, not fixed paths. Investors should use this quantitative context as one component of a broader research process that includes other fundamental and technical tools.

Key Severity Thresholds and What to Watch

To monitor the progress of Keysight Technologies, investors should watch specific price levels and drawdown thresholds. A move above $373.34 would represent a 0.0% drawdown, resetting the severity score to 0.0 and signaling a complete recovery.

Conversely, if the stock experiences renewed downward pressure and falls below the current price of $338.64, the drawdown will deepen beyond -9.3%. A deeper drawdown could push the Drawdown Severity Score™ back above 2.0, potentially returning the stock to the yellow zone. The key threshold to watch for zone transition is the boundary between the green zone (Slightly Elevated) and the yellow zone (Elevated). Keeping track of these key levels allows investors to objectively assess whether the recovery is progressing along historical lines or if the risk profile is deteriorating.