3 New Strong Buy Ratings from Top-Rated Analysts: 05/22/2025

You want great stock ideas. We’ve got them in abundance. Just for you, here’s a sampling of the latest and greatest from our Strong Buy Stocks from Top Wall Street Analysts screener:

• Keysight Technologies (KEYS) gets a reiterated Strong Buy rating 
• The 1-year forecasts for Penguin Solutions (PENG) look great — here’s why
• The real reason why analysts are so bullish on KBR (KBR)

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1. Keysight Technologies (NYSE: KEYS)

Keysight Technologies has embedded itself as a crucial player in a variety of high-growth industries. The company manufactures testing equipment and software essential for bringing any sort of electronics product to market. While estimates are cautious, the company maintains a rock-solid business model and a pretty healthy checkbook — setting it up as a potentially lucrative long-term play.

Zen Rating: B (Buy) — see full analysis >  

Recent Price: $165.40 — get current quote > 

Max 1-year forecast: $200.00 

Why we’re watching:

• Although mixed, overall coverage of KEYS tends strongly to the bullish side of the aisle. The stock currently has 6 Strong Buy ratings, 1 Buy rating, and 1 Sell rating. See the ratings
• Morgan Stanley researcher Meta Marshall (a top 4% rated analyst) reiterated a Strong Buy rating on May 13, ahead of Keysight’s Q2 2025 earnings, and increased their price target on the stock from $156 to $180.
• Consistent with previous quarters, Marshall said they anticipate a revenue beat in the low single digits and an order number that is roughly in line with revenues.
• Looking ahead, the analyst said they are bullish on management's cautious setup for FY 2025, which leaves room for earnings adjustments.
• Keysight Technologies is the 3rd highest rated stock in the Scientific & Technical Industry Instrument industry, which has an Industry Rating of A.
• The average price target for KEYS is $182.13, and implies a 10.11% upside. However, it has a Zen Rating of B — and stocks with this distinction have historically provided an average annual return of 19.88%. At present, Keysight Technologies shares rank in the top 9% of equities overall.
• Safety and Financials are Keysight Technologies’ strong suits — as the stock ranks in the top 4% and 5% in these categories, respectively. (See all 7 Zen Component Grades here >)

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2. Penguin Solutions (NASDAQ: PENG)

An end-to-end provider of IT infrastructure, Penguin Solutions dabbles in everything from solid state drives and DRAM modules to LED lights. Dabbles might be underselling it, though — the $1 billion company has been in business since 1988. Semiconductor stocks are still in hot water — but this is the pick of the litter, and it’s currently trading at a steep discount.

Zen Rating: A (Strong Buy) — see full analysis >  

Recent Price: $19.08 — get current quote > 

Max 1-year forecast: $30.00 

Why we’re watching:

• At present, 7 analysts issue ratings for Penguin Solutions stock — 4 have given it a Strong Buy rating, 2 have deemed it a Buy, and 1 analyst has given the stock a Hold rating.
• The average 12-month price forecast for PENG stands at $24.64, a figure that implies a hefty 29.16% upside from current prices.
• Rosenblatt researcher Kevin Cassidy (a top 6% rated analyst) recently maintained a Strong Buy rating on Penguin Solutions shares, and kept a $27 price target.
• In addition, Michael Ng of Goldman Sachs (a top 6% rated analyst) recently maintained a Strong Buy rating, but slashed his price target from $26 to $22.50.
• PENG is the top-rated stock in the entire Semiconductor industry.
• The stock currently carries an overall Zen Rating of A, and ranks in the top 3% of the more than 4,600 equities that we track.
• A lot of PENG’s appeal is down to its valuation — as it currently ranks in the top 4% of stocks in terms of Value.
• However, Penguin Solutions is no slouch when it comes to Growth either — as the stock ranks in the top 2% in this regard. (See all 7 Zen Component Grades here >)

3. KBR (NYSE: KBR)

KBR is a government contractor (the 44th largest one, fun fact) that provides a very expansive suite of services to the public sector — including but not limited to astronaut training, satellite control systems, data analytics, and operational intelligence. The proposed Pentagon budget cuts caused the stock to dip — but Wall Street remains optimistic, and a recent earnings beat suggests that this trust is not unfounded.

Zen Rating: A (Strong Buy) — see full analysis >  

Recent Price: $56.12  — get current quote > 

Max 1-year forecast: $84.00 

Why we’re watching:

• Analyst coverage of KBR is almost unanimously bullish — the stock currently has 5 Strong Buy ratings and 1 Hold rating. See the ratings
• KeyBanc researcher Sangita Jain (a top 14% rated analyst) doubled down on a Strong Buy rating following the company’s Q1 2025 earnings call, and increased her price target from $59 to $63.
• Jain attributed the quarter's beat to "margins in both MTS and STS."
• The analyst noted that management reaffirmed its FY 2025 guidance in spite of the beat, "likely prudent ahead of the impending HomeSafe ramp and continued EUCOM uncertainty."
• KBR is also currently the 4th highest rated stock in the Engineering & Construction industry, which has an Industry Rating of A. 
• KBR shares have a Zen Rating of A, and rank in the 96th percentile of equities based on a holistic analysis of 115 factors that correlate with outsized returns. 
• Stocks with a Zen Rating of A have historically provided an average annual return of 32.52%. In the last 365 days, however, KBR stock has lost 14.79% in value. However, this only means that it is now trading at an attractive valuation — in fact, the stock ranks in the top 4% according to Value. (See all 7 Zen Component Grades here >)

What to Do Next?

• 200 Stocks to Sell Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

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