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Teradyne (TER) Stock Moves -0.15%: What You Should Know

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Teradyne (TER - Free Report) closed the most recent trading day at $81.11, moving -0.15% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.4%. Elsewhere, the Dow lost 1.34%, while the tech-heavy Nasdaq lost 1.57%.

Prior to today's trading, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 3.35% over the past month. This has outpaced the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 0.46% in that time.

Wall Street will be looking for positivity from TER as it approaches its next earnings report date. The company is expected to report EPS of $1.11, up 44.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $785.96 million, up 35.03% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.87 per share and revenue of $2.85 billion, which would represent changes of +35.31% and +23.98%, respectively, from the prior year.

Any recent changes to analyst estimates for TER should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TER is currently a Zacks Rank #3 (Hold).

Investors should also note TER's current valuation metrics, including its Forward P/E ratio of 20.98. For comparison, its industry has an average Forward P/E of 31.99, which means TER is trading at a discount to the group.

Also, we should mention that TER has a PEG ratio of 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Testing Equipment industry currently had an average PEG ratio of 3.55 as of yesterday's close.

The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% of all 250+ industries.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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