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Teradyne (TER) Stock Drops Despite Market Gains: Important Facts to Note

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Teradyne (TER - Free Report) ended the recent trading session at $227.70, demonstrating a -1.08% change from the preceding day's closing price. This change lagged the S&P 500's 0.26% gain on the day. Meanwhile, the Dow experienced a rise of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.25%.

The stock of maker of wireless products, data storage and equipment to test semiconductors has risen by 24.29% in the past month, leading the Computer and Technology sector's gain of 1.58% and the S&P 500's gain of 1.57%.

Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. The company's earnings report is set to go public on February 2, 2026. The company is expected to report EPS of $1.36, up 43.16% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $968.79 million, reflecting a 28.68% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.51 per share and revenue of $3.05 billion, which would represent changes of +9.01% and 0%, respectively, from the prior year.

Any recent changes to analyst estimates for Teradyne should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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.

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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% higher. Teradyne currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Teradyne is currently exchanging hands at a Forward P/E ratio of 45.32. For comparison, its industry has an average Forward P/E of 24.89, which means Teradyne is trading at a premium to the group.

Meanwhile, TER's PEG ratio is currently 1.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.75 as of yesterday's close.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 34% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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