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

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In the latest trading session, Teradyne (TER - Free Report) closed at $120.61, marking a +2% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.69%. Elsewhere, the Dow saw a downswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.82%.

The stock of maker of wireless products, data storage and equipment to test semiconductors has risen by 11.84% in the past month, leading the Computer and Technology sector's gain of 3.71% and the S&P 500's gain of 3.79%.

The upcoming earnings release of Teradyne will be of great interest to investors. The company is predicted to post an EPS of $0.78, indicating a 13.33% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $744.48 million, showing a 0.97% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.13 per share and revenue of $2.89 billion. These totals would mark changes of -2.8% and +2.61%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Teradyne. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.39% decrease. Teradyne presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Teradyne is presently trading at a Forward P/E ratio of 37.76. This expresses a premium compared to the average Forward P/E of 18.71 of its industry.

One should further note that TER currently holds a PEG ratio of 2.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.91 as of yesterday's close.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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