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Teradyne (TER) Beats Stock Market Upswing: What Investors Need to Know

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Teradyne (TER - Free Report) closed the most recent trading day at $190.45, moving +2.83% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.79%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.38%.

Shares of the maker of wireless products, data storage and equipment to test semiconductors witnessed a gain of 10.09% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.85%, and the S&P 500's gain of 0.87%.

Market participants will be closely following the financial results of Teradyne in its upcoming release. The company's upcoming EPS is projected at $1.36, signifying a 43.16% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $970.1 million, up 28.85% from the year-ago period.

TER's full-year Zacks Consensus Estimates are calling for earnings of $3.51 per share and revenue of $3.05 billion. These results would represent year-over-year changes of +9.01% and +8.06%, respectively.

Investors might also notice recent changes to analyst estimates for Teradyne. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.41% higher within the past month. Right now, Teradyne possesses a Zacks Rank of #2 (Buy).

With respect to valuation, Teradyne is currently being traded at a Forward P/E ratio of 52.78. This signifies a premium in comparison to the average Forward P/E of 24.14 for its industry.

One should further note that TER currently holds a PEG ratio of 1.93. 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 average PEG ratio for the Electronics - Miscellaneous Products industry stood at 1.85 at the close of the market yesterday.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 60, placing it within the top 25% of over 250 industries.

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.

To follow TER in the coming trading sessions, be sure to utilize Zacks.com.


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