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Here's How Much a $1000 Investment in Teradyne Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Teradyne (TER - Free Report) ten years ago? It may not have been easy to hold on to TER for all that time, but if you did, how much would your investment be worth today?
Teradyne's Business In-Depth
With that in mind, let's take a look at Teradyne's main business drivers.
Headquartered in North Reading, MA, Teradyne designs, develops, manufactures and sells automated test equipment and robotics products. Its automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries.
Robotics products include collaborative robotic arms and autonomous mobile robots (“AMRs”) that are used by global manufacturing, logistics and industrial customers.
Teradyne's semiconductor test products are used both for wafer level and device package testing of semiconductor devices. Its product portfolio comprises the FLEX Test platform, J750 test system, Magnum test platform and ETS platform, each tailored for specific semiconductor testing needs.
The company’s system Test segment is comprised of three business units: Storage Test, Defense/Aerospace and Production Board Test. Wireless Test business operates under the LitePoint brand name and provides test solutions utilized in the development and manufacturing of wireless devices and modules.
The Robotics segment comprises two business units: Universal Robots and Mobile Industrial Robots (MiR).
Universal Robots offers a variety of collaborative robot models, including the UR3, UR5, UR10, UR16 and UR20, each with different weight carrying capacity and arm reach. MiR offers four collaborative autonomous mobile robot models, MiR100, MiR250, MiR600 and MiR1350, each with a different payload carrying capacity.
Teradyne reports revenues primarily under four segments: Semiconductor Test, System Test, Robotics, and Wireless Test. In 2022, the company reported revenues of $3.15 billion, out of which the Semiconductor Test, System Test, Robotics and Wireless Test business contributed 65.9%, 14.9%, 12.8% and 6.4%, respectively.
Teradyne competes globally with key rivals like Advantest, Cohu, Keysight, Test Research, SPEA, Rohde & Schwarz, Anritsu, KUKA, ABB, FANUC, Yaskawa, Techman, Doosan, AUBO, Omron, Fetch, OTTO Motors, Vecna, Seegrid and Balyo.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Teradyne, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in January 2014 would be worth $5,794.42, or a 479.44% gain, as of January 4, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 156.90% and the price of gold increased 58.55% over the same time frame in comparison.
Analysts are forecasting more upside for TER too.
Teradyne is benefiting from its robust and diversified portfolio, which fortifies it against market volatility. It has been riding on robust performance in the Robotics segment thanks to strong demand for UR20 collaborative products. Computing, industrial analog and automotive are expected to drive top-line growth. Demand for high-speed DRAM tests remains high, which is expected to help the company gain some memory market share in 2023. It is expected to benefit from a broader 3-nanometer adoption in the mobility space, along with strong demand in the automotive space driven by the ongoing transition from internal combustion to electric vehicles. Flash package test demand is expected to grow, along with the defense and aerospace business. However, mobility weakness and over-supply in HDD are expected to hurt System Test Group business.
The stock has jumped 11.54% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Teradyne Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Teradyne (TER - Free Report) ten years ago? It may not have been easy to hold on to TER for all that time, but if you did, how much would your investment be worth today?
Teradyne's Business In-Depth
With that in mind, let's take a look at Teradyne's main business drivers.
Headquartered in North Reading, MA, Teradyne designs, develops, manufactures and sells automated test equipment and robotics products. Its automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries.
Robotics products include collaborative robotic arms and autonomous mobile robots (“AMRs”) that are used by global manufacturing, logistics and industrial customers.
Teradyne's semiconductor test products are used both for wafer level and device package testing of semiconductor devices. Its product portfolio comprises the FLEX Test platform, J750 test system, Magnum test platform and ETS platform, each tailored for specific semiconductor testing needs.
The company’s system Test segment is comprised of three business units: Storage Test, Defense/Aerospace and Production Board Test. Wireless Test business operates under the LitePoint brand name and provides test solutions utilized in the development and manufacturing of wireless devices and modules.
The Robotics segment comprises two business units: Universal Robots and Mobile Industrial Robots (MiR).
Universal Robots offers a variety of collaborative robot models, including the UR3, UR5, UR10, UR16 and UR20, each with different weight carrying capacity and arm reach. MiR offers four collaborative autonomous mobile robot models, MiR100, MiR250, MiR600 and MiR1350, each with a different payload carrying capacity.
Teradyne reports revenues primarily under four segments: Semiconductor Test, System Test, Robotics, and Wireless Test. In 2022, the company reported revenues of $3.15 billion, out of which the Semiconductor Test, System Test, Robotics and Wireless Test business contributed 65.9%, 14.9%, 12.8% and 6.4%, respectively.
Teradyne competes globally with key rivals like Advantest, Cohu, Keysight, Test Research, SPEA, Rohde & Schwarz, Anritsu, KUKA, ABB, FANUC, Yaskawa, Techman, Doosan, AUBO, Omron, Fetch, OTTO Motors, Vecna, Seegrid and Balyo.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Teradyne, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in January 2014 would be worth $5,794.42, or a 479.44% gain, as of January 4, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 156.90% and the price of gold increased 58.55% over the same time frame in comparison.
Analysts are forecasting more upside for TER too.
Teradyne is benefiting from its robust and diversified portfolio, which fortifies it against market volatility. It has been riding on robust performance in the Robotics segment thanks to strong demand for UR20 collaborative products. Computing, industrial analog and automotive are expected to drive top-line growth. Demand for high-speed DRAM tests remains high, which is expected to help the company gain some memory market share in 2023. It is expected to benefit from a broader 3-nanometer adoption in the mobility space, along with strong demand in the automotive space driven by the ongoing transition from internal combustion to electric vehicles. Flash package test demand is expected to grow, along with the defense and aerospace business. However, mobility weakness and over-supply in HDD are expected to hurt System Test Group business.
The stock has jumped 11.54% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023; the consensus estimate has moved up as well.