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Teradyne (TER) Gains But Lags Market: What You Should Know

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In the latest trading session, Teradyne (TER - Free Report) closed at $86.63, marking a +0.62% move from the previous day. This change lagged the S&P 500's 1.64% gain on the day. At the same time, the Dow added 0.88%, and the tech-heavy Nasdaq gained 2.56%.

Heading into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 14.13% over the past month, outpacing the Computer and Technology sector's gain of 3.41% and the S&P 500's gain of 2.44% in that time.

Wall Street will be looking for positivity from TER as it approaches its next earnings report date. On that day, TER is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 44.16%. Meanwhile, our latest consensus estimate is calling for revenue of $785.96 million, up 35.03% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.87 per share and revenue of $2.85 billion. These totals would mark changes of +35.31% and +23.98%, respectively, from last year.

Any recent changes to analyst estimates for TER should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TER is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, TER currently has a Forward P/E ratio of 22.24. This represents a discount compared to its industry's average Forward P/E of 32.81.

Investors should also note that TER has a PEG ratio of 1.33 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Testing Equipment industry currently had an average PEG ratio of 3.47 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 124, putting it in the top 50% of all 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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