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Teradyne, Inc. (TER) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Teradyne (TER - Free Report) ? Shares have been on the move with the stock up 23.3% over the past month. The stock hit a new 52-week high of $177.24 in the previous session. Teradyne has gained 38.1% since the start of the year compared to the 30.9% gain for the Zacks Computer and Technology sector and the 36.7% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 28, 2025, Teradyne reported EPS of $0.85 versus consensus estimate of $0.78.
For the current fiscal year, Teradyne is expected to post earnings of $3.14 per share on $2.9 in revenues. This represents a -2.48% change in EPS on a 2.76% change in revenues. For the next fiscal year, the company is expected to earn $4.54 per share on $3.44 in revenues. This represents a year-over-year change of 44.52% and 18.61%, respectively.
Valuation Metrics
While Teradyne has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Teradyne has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 55.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.4X. On a trailing cash flow basis, the stock currently trades at 43.9X versus its peer group's average of 16.2X. Additionally, the stock has a PEG ratio of 3.64. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Teradyne currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Teradyne passes the test. Thus, it seems as though Teradyne shares could still be poised for more gains ahead.
How Does TER Stack Up to the Competition?
Shares of TER have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MKS Inc. (MKSI - Free Report) . MKSI has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. MKS Inc. beat our consensus estimate by 9.94%, and for the current fiscal year, MKSI is expected to post earnings of $7.02 per share on revenue of $3.82 billion.
Shares of MKS Inc. have gained 7.7% over the past month, and currently trade at a forward P/E of 20.14X and a P/CF of 11.58X.
The Electronics - Miscellaneous Products industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TER and MKSI, even beyond their own solid fundamental situation.
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Teradyne, Inc. (TER) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Teradyne (TER - Free Report) ? Shares have been on the move with the stock up 23.3% over the past month. The stock hit a new 52-week high of $177.24 in the previous session. Teradyne has gained 38.1% since the start of the year compared to the 30.9% gain for the Zacks Computer and Technology sector and the 36.7% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 28, 2025, Teradyne reported EPS of $0.85 versus consensus estimate of $0.78.
For the current fiscal year, Teradyne is expected to post earnings of $3.14 per share on $2.9 in revenues. This represents a -2.48% change in EPS on a 2.76% change in revenues. For the next fiscal year, the company is expected to earn $4.54 per share on $3.44 in revenues. This represents a year-over-year change of 44.52% and 18.61%, respectively.
Valuation Metrics
While Teradyne has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Teradyne has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 55.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.4X. On a trailing cash flow basis, the stock currently trades at 43.9X versus its peer group's average of 16.2X. Additionally, the stock has a PEG ratio of 3.64. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Teradyne currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Teradyne passes the test. Thus, it seems as though Teradyne shares could still be poised for more gains ahead.
How Does TER Stack Up to the Competition?
Shares of TER have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MKS Inc. (MKSI - Free Report) . MKSI has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. MKS Inc. beat our consensus estimate by 9.94%, and for the current fiscal year, MKSI is expected to post earnings of $7.02 per share on revenue of $3.82 billion.
Shares of MKS Inc. have gained 7.7% over the past month, and currently trade at a forward P/E of 20.14X and a P/CF of 11.58X.
The Electronics - Miscellaneous Products industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TER and MKSI, even beyond their own solid fundamental situation.