Back to top

Image: Bigstock

Teradyne (TER) Increases Despite Market Slip: Here's What You Need to Know

Read MoreHide Full Article

Teradyne (TER - Free Report) ended the recent trading session at $91.92, demonstrating a +2.22% change from the preceding day's closing price. This change outpaced the S&P 500's 0.11% loss on the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, lost 0.82%.

Prior to today's trading, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 13.12% outpaced the Computer and Technology sector's gain of 8.76% and the S&P 500's gain of 5.17%.

The upcoming earnings release of Teradyne will be of great interest to investors. On that day, Teradyne is projected to report earnings of $0.54 per share, which would represent a year-over-year decline of 37.21%. At the same time, our most recent consensus estimate is projecting a revenue of $646.05 million, reflecting a 11.49% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.16 per share and revenue of $2.9 billion, which would represent changes of -1.86% and +2.89%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Teradyne. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Teradyne possesses a Zacks Rank of #4 (Sell).

Looking at valuation, Teradyne is presently trading at a Forward P/E ratio of 28.43. This denotes a premium relative to the industry average Forward P/E of 19.08.

It is also worth noting that TER currently has a PEG ratio of 3.93. 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. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.72.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 34% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


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


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

Published in