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Teradyne (TER) Gains As Market Dips: What You Should Know

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Teradyne (TER - Free Report) closed the most recent trading day at $166.38, moving +0.16% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Coming into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 8.85% in the past month. In that same time, the Computer and Technology sector gained 4.06%, while the S&P 500 gained 5.76%.

Wall Street will be looking for positivity from Teradyne as it approaches its next earnings report date. The company is expected to report EPS of $1.29, up 17.27% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $867.39 million, up 14.29% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Teradyne. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.5% higher within the past month. Teradyne is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Teradyne is holding a Forward P/E ratio of 26.27. This represents a discount compared to its industry's average Forward P/E of 26.79.

Investors should also note that TER has a PEG ratio of 1.76 right now. 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. TER's industry had an average PEG ratio of 3.1 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 49% 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.

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


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