Back to top

Image: Bigstock

Teradyne (TER) Stock Moves -0.42%: What You Should Know

Read MoreHide Full Article

The latest trading session saw Teradyne (TER - Free Report) ending at $141.27, denoting a -0.42% adjustment from its last day's close. This move was narrower than the S&P 500's daily loss of 0.6%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 1.08%.

The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 24.73% in the past month, exceeding the Computer and Technology sector's gain of 7.76% and the S&P 500's gain of 3.15%.

Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.76, marking a 3.8% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $703.04 million, up 2.72% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.04 per share and a revenue of $2.77 billion, indicating changes of +3.75% and +3.37%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Teradyne. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.5% higher. Teradyne is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Teradyne has a Forward P/E ratio of 46.74 right now. This valuation marks a premium compared to its industry's average Forward P/E of 26.93.

One should further note that TER currently holds a PEG ratio of 2.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Electronics - Testing Equipment industry was having an average PEG ratio of 2.67.

The Electronics - Testing Equipment industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 37, this industry ranks in the top 15% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Teradyne, Inc. (TER) - free report >>

Published in