Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Teradyne (TER - Free Report) closed at $118.57, marking a -0.97% move from the previous day. This move lagged the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq gained 0.51%.

Prior to today's trading, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 10.53% over the past month. This has outpaced the Computer and Technology sector's gain of 6.68% and the S&P 500's gain of 4% in that time.

TER will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.99, up 12.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $716.56 million, up 9.46% from the year-ago period.

TER's full-year Zacks Consensus Estimates are calling for earnings of $4.49 per share and revenue of $3.08 billion. These results would represent year-over-year changes of +56.99% and +34.18%, respectively.

Any recent changes to analyst estimates for TER should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has moved 0.11% lower. TER is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, TER is holding a Forward P/E ratio of 26.67. This represents a discount compared to its industry's average Forward P/E of 32.2.

We can also see that TER currently has a PEG ratio of 1.26. 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. Electronics - Testing Equipment stocks are, on average, holding a PEG ratio of 3.82 based on yesterday's closing prices.

The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


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


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

Published in