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Teradyne (TER) Outperforms Broader Market: What You Need to Know

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In the latest trading session, Teradyne (TER - Free Report) closed at $141.12, marking a +2.53% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.

Heading into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 14.12% over the past month, outpacing the Computer and Technology sector's gain of 8.07% and the S&P 500's gain of 3.54%.

Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. The company is expected to report EPS of $0.78, down 13.33% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $744.48 million, indicating a 0.97% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.13 per share and a revenue of $2.89 billion, demonstrating changes of -2.8% and +2.61%, respectively, from the preceding year.

Any recent changes to analyst estimates for Teradyne should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Teradyne is currently a Zacks Rank #4 (Sell).

In terms of valuation, Teradyne is currently trading at a Forward P/E ratio of 43.96. This indicates a premium in contrast to its industry's Forward P/E of 20.05.

We can additionally observe that TER currently boasts a PEG ratio of 2.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.85 at yesterday's closing price.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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