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Teradyne (TER) Moves 6.3% Higher: Will This Strength Last?

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Teradyne (TER - Free Report) shares rallied 6.3% in the last trading session to close at $98.62. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.9% gain over the past four weeks.

Teradyne is benefiting from its robust and diversified portfolio. Strong adoption of Teradyne automated solutions that is automating semiconductor customers' back-end processes is noteworthy. 

This maker of wireless products, data storage and equipment to test semiconductors is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -37.2%. Revenues are expected to be $646.05 million, down 11.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Teradyne, the consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TER going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Teradyne is a member of the Zacks Electronics - Miscellaneous Products industry. One other stock in the same industry, Hayward Holdings, Inc. (HAYW - Free Report) , finished the last trading session 4.3% higher at $15.23. HAYW has returned 3.3% over the past month.

Hayward Holdings' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.22. Compared to the company's year-ago EPS, this represents a change of +4.8%. Hayward Holdings currently boasts a Zacks Rank of #3 (Hold).


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