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Teradyne (TER) Surpasses Market Returns: Some Facts Worth Knowing

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Teradyne (TER - Free Report) closed the most recent trading day at $87.36, moving +1.24% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.96%. Elsewhere, the Dow saw an upswing of 0.89%, while the tech-heavy Nasdaq appreciated by 0.94%.

Shares of the maker of wireless products, data storage and equipment to test semiconductors witnessed a gain of 12.09% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.53%, and the S&P 500's gain of 0.5%.

Investors will be eagerly watching for the performance of Teradyne in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.54, marking a 37.21% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $646.05 million, showing a 11.49% drop compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.16 per share and a revenue of $2.9 billion, representing changes of -1.86% and +2.89%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Teradyne. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Teradyne currently has a Zacks Rank of #3 (Hold).

Investors should also note Teradyne's current valuation metrics, including its Forward P/E ratio of 27.28. This valuation marks a premium compared to its industry average Forward P/E of 18.52.

We can also see that TER currently has a PEG ratio of 3.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Electronics - Miscellaneous Products stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 139, placing it within the bottom 44% of over 250 industries.

The Zacks Industry Rank is ordered 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.

To follow TER in the coming trading sessions, be sure to utilize Zacks.com.


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