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Here's Why Teradyne (TER) Fell More Than Broader Market
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Teradyne (TER - Free Report) closed the most recent trading day at $133.21, moving -1.09% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.29%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.34%.
The stock of maker of wireless products, data storage and equipment to test semiconductors has risen by 13.55% in the past month, leading the Computer and Technology sector's gain of 8.98% and the S&P 500's gain of 3.08%.
The investment community will be paying close attention to the earnings performance of Teradyne in its upcoming release. The company's upcoming EPS is projected at $0.78, signifying a 13.33% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $744.48 million, up 0.97% from the prior-year 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Teradyne. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Teradyne boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Teradyne is at present trading with a Forward P/E ratio of 43.01. Its industry sports an average Forward P/E of 20.26, so one might conclude that Teradyne is trading at a premium comparatively.
We can also see that TER currently has a PEG ratio of 2.83. 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. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 1.88.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why Teradyne (TER) Fell More Than Broader Market
Teradyne (TER - Free Report) closed the most recent trading day at $133.21, moving -1.09% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.29%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.34%.
The stock of maker of wireless products, data storage and equipment to test semiconductors has risen by 13.55% in the past month, leading the Computer and Technology sector's gain of 8.98% and the S&P 500's gain of 3.08%.
The investment community will be paying close attention to the earnings performance of Teradyne in its upcoming release. The company's upcoming EPS is projected at $0.78, signifying a 13.33% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $744.48 million, up 0.97% from the prior-year 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Teradyne. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Teradyne boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Teradyne is at present trading with a Forward P/E ratio of 43.01. Its industry sports an average Forward P/E of 20.26, so one might conclude that Teradyne is trading at a premium comparatively.
We can also see that TER currently has a PEG ratio of 2.83. 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. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 1.88.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.