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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 $107.55, moving +1.06% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.02%.

Heading into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had lost 6.84% over the past month, outpacing the Computer and Technology sector's loss of 10.02% and lagging the S&P 500's loss of 6.24% in that time.

Wall Street will be looking for positivity from Teradyne as it approaches its next earnings report date. On that day, Teradyne is projected to report earnings of $0.88 per share, which would represent a year-over-year decline of 20.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $739.32 million, down 5.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.91 per share and revenue of $3.48 billion. These totals would mark changes of -17.89% and -6.12%, respectively, from last year.

Any recent changes to analyst estimates for Teradyne should also be noted by investors. 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.

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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Teradyne currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Teradyne has a Forward P/E ratio of 21.68 right now. Its industry sports an average Forward P/E of 23.96, so we one might conclude that Teradyne is trading at a discount comparatively.

Also, we should mention that TER has a PEG ratio of 1.96. 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 was holding an average PEG ratio of 2.26 at yesterday's closing price.

The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% 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

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