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Why Teradyne (TER) Dipped More Than Broader Market Today
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In the latest trading session, Teradyne (TER - Free Report) closed at $140.14, marking a -5.23% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 0.67%.
Prior to today's trading, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 24.36% outpaced the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.
The investment community will be paying close attention to the earnings performance of Teradyne in its upcoming release. The company's earnings per share (EPS) are projected to be $0.78, reflecting a 13.33% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $744.48 million, indicating a 0.97% increase compared to the same quarter of the previous 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.
Investors should also pay attention to any latest changes in analyst estimates for Teradyne. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Teradyne currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Teradyne is presently trading at a Forward P/E ratio of 47.23. Its industry sports an average Forward P/E of 21.33, so one might conclude that Teradyne is trading at a premium comparatively.
We can also see that TER currently has a PEG ratio of 3.11. 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. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 1.89.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why Teradyne (TER) Dipped More Than Broader Market Today
In the latest trading session, Teradyne (TER - Free Report) closed at $140.14, marking a -5.23% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 0.67%.
Prior to today's trading, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 24.36% outpaced the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.
The investment community will be paying close attention to the earnings performance of Teradyne in its upcoming release. The company's earnings per share (EPS) are projected to be $0.78, reflecting a 13.33% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $744.48 million, indicating a 0.97% increase compared to the same quarter of the previous 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.
Investors should also pay attention to any latest changes in analyst estimates for Teradyne. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Teradyne currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Teradyne is presently trading at a Forward P/E ratio of 47.23. Its industry sports an average Forward P/E of 21.33, so one might conclude that Teradyne is trading at a premium comparatively.
We can also see that TER currently has a PEG ratio of 3.11. 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. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 1.89.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.