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Teradyne (TER) Dips More Than Broader Market: What You Should Know

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The most recent trading session ended with Teradyne (TER - Free Report) standing at $128.54, reflecting a -1.76% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.49%.

Shares of the maker of wireless products, data storage and equipment to test semiconductors have appreciated by 21.05% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.27% and the S&P 500's gain of 0.4%.

Market participants will be closely following the financial results of Teradyne in its upcoming release. It is anticipated that the company will report an EPS of $0.90, marking a 13.92% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $740.68 million, reflecting a 10.45% rise from the equivalent quarter last year.

TER's full-year Zacks Consensus Estimates are calling for earnings of $3.17 per share and revenue of $2.81 billion. These results would represent year-over-year changes of +8.19% and +4.92%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Teradyne. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has remained steady. Right now, Teradyne possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Teradyne currently has a Forward P/E ratio of 41.29. Its industry sports an average Forward P/E of 20.18, so one might conclude that Teradyne is trading at a premium comparatively.

One should further note that TER currently holds a PEG ratio of 2.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TER's industry had an average PEG ratio of 2.01 as of yesterday's close.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 151, placing it within the bottom 40% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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