Teradyne (TER - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this maker of wireless products, data storage and equipment to test semiconductors is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Teradyne, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $0.73 per share for the current quarter, which represents a year-over-year change of -7.59%.
The Zacks Consensus Estimate for Teradyne has increased 15.24% over the last 30 days, as five estimates have gone higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $2.99 per share for the full year, which represents a change of +2.05% from the prior-year number.
The revisions trend for the current year also appears quite promising for Teradyne, with seven estimates moving higher over the past month compared to one negative revision. The consensus estimate has also received a boost over this time frame, increasing 6.2%.
Favorable Zacks Rank
The promising estimate revisions have helped Teradyne earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Teradyne have attracted decent investments and pushed the stock 5.6% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Teradyne (TER - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this maker of wireless products, data storage and equipment to test semiconductors is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Teradyne, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $0.73 per share for the current quarter, which represents a year-over-year change of -7.59%.
The Zacks Consensus Estimate for Teradyne has increased 15.24% over the last 30 days, as five estimates have gone higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $2.99 per share for the full year, which represents a change of +2.05% from the prior-year number.
The revisions trend for the current year also appears quite promising for Teradyne, with seven estimates moving higher over the past month compared to one negative revision. The consensus estimate has also received a boost over this time frame, increasing 6.2%.
Favorable Zacks Rank
The promising estimate revisions have helped Teradyne earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Teradyne have attracted decent investments and pushed the stock 5.6% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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