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Here's Why Teradyne (TER) Fell More Than Broader Market
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In the latest close session, Teradyne (TER - Free Report) was down 7.44% at $436.86. The stock trailed the S&P 500, which registered a daily loss of 0.05%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.24%.
The maker of wireless products, data storage and equipment to test semiconductors's shares have seen an increase of 23.34% over the last month, surpassing the Computer and Technology sector's loss of 2.81% and the S&P 500's loss of 1.42%.
The investment community will be closely monitoring the performance of Teradyne in its forthcoming earnings report. The company is forecasted to report an EPS of $2.04, showcasing a 257.89% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.22 billion, up 86.43% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.2 per share and revenue of $4.53 billion, indicating changes of +81.82% and +42.08%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Teradyne. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.59% increase. Teradyne currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Teradyne is presently being traded at a Forward P/E ratio of 65.53. Its industry sports an average Forward P/E of 29.47, so one might conclude that Teradyne is trading at a premium comparatively.
Investors should also note that TER has a PEG ratio of 1.36 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 23% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Here's Why Teradyne (TER) Fell More Than Broader Market
In the latest close session, Teradyne (TER - Free Report) was down 7.44% at $436.86. The stock trailed the S&P 500, which registered a daily loss of 0.05%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.24%.
The maker of wireless products, data storage and equipment to test semiconductors's shares have seen an increase of 23.34% over the last month, surpassing the Computer and Technology sector's loss of 2.81% and the S&P 500's loss of 1.42%.
The investment community will be closely monitoring the performance of Teradyne in its forthcoming earnings report. The company is forecasted to report an EPS of $2.04, showcasing a 257.89% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.22 billion, up 86.43% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.2 per share and revenue of $4.53 billion, indicating changes of +81.82% and +42.08%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Teradyne. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.59% increase. Teradyne currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Teradyne is presently being traded at a Forward P/E ratio of 65.53. Its industry sports an average Forward P/E of 29.47, so one might conclude that Teradyne is trading at a premium comparatively.
Investors should also note that TER has a PEG ratio of 1.36 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 23% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.