Back to top

Image: Bigstock

Teradyne (TER) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Teradyne (TER - Free Report) ended the recent trading session at $133.64, demonstrating a +1.31% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.77%. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.87%.

The the stock of maker of wireless products, data storage and equipment to test semiconductors has risen by 0.52% in the past month, lagging the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87%.

The upcoming earnings release of Teradyne will be of great interest to investors. The company's earnings report is expected on October 23, 2024. On that day, Teradyne is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 2.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $714.07 million, up 1.47% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.02 per share and a revenue of $2.78 billion, indicating changes of +3.07% and +4.03%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Teradyne. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Teradyne is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Teradyne is presently trading at a Forward P/E ratio of 43.63. This indicates a premium in contrast to its industry's Forward P/E of 26.33.

One should further note that TER currently holds a PEG ratio of 2.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Electronics - Testing Equipment industry held an average PEG ratio of 2.7.

The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


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


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

Published in