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Teradyne (TER) Falls More Steeply Than Broader Market: What Investors Need to Know
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Teradyne (TER - Free Report) closed at $409.35 in the latest trading session, marking a -5.33% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.57% for the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 1.15%.
The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 34.69% in the past month, exceeding the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 2.14%.
Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. On that day, Teradyne is projected to report earnings of $1.99 per share, which would represent year-over-year growth of 249.12%. Meanwhile, our latest consensus estimate is calling for revenue of $1.22 billion, up 86.43% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.09 per share and revenue of $4.53 billion. These totals would mark changes of +79.04% and +42.08%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Teradyne. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Teradyne currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Teradyne's current valuation metrics, including its Forward P/E ratio of 60.99. Its industry sports an average Forward P/E of 30.05, so one might conclude that Teradyne is trading at a premium comparatively.
We can additionally observe that TER currently boasts a PEG ratio of 1.78. 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. As the market closed yesterday, the Electronics - Miscellaneous Products industry was having an average PEG ratio of 1.73.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.
View the Zacks #1 Rank List
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Teradyne (TER) Falls More Steeply Than Broader Market: What Investors Need to Know
Teradyne (TER - Free Report) closed at $409.35 in the latest trading session, marking a -5.33% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.57% for the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 1.15%.
The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 34.69% in the past month, exceeding the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 2.14%.
Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. On that day, Teradyne is projected to report earnings of $1.99 per share, which would represent year-over-year growth of 249.12%. Meanwhile, our latest consensus estimate is calling for revenue of $1.22 billion, up 86.43% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.09 per share and revenue of $4.53 billion. These totals would mark changes of +79.04% and +42.08%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Teradyne. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Teradyne currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Teradyne's current valuation metrics, including its Forward P/E ratio of 60.99. Its industry sports an average Forward P/E of 30.05, so one might conclude that Teradyne is trading at a premium comparatively.
We can additionally observe that TER currently boasts a PEG ratio of 1.78. 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. As the market closed yesterday, the Electronics - Miscellaneous Products industry was having an average PEG ratio of 1.73.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.