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Here's Why Teradyne (TER) Fell More Than Broader Market
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Teradyne (TER - Free Report) closed at $369.46 in the latest trading session, marking a -1.22% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.14%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.57%.
Shares of the maker of wireless products, data storage and equipment to test semiconductors witnessed a loss of 10.97% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 4.82%, and the S&P 500's gain of 0.25%.
The investment community will be paying close attention to the earnings performance of Teradyne in its upcoming release. The company is slated to reveal its earnings on July 28, 2026. In that report, analysts expect Teradyne to post earnings of $2.04 per share. This would mark year-over-year growth of 257.89%. In the meantime, our current consensus estimate forecasts the revenue to be $1.22 billion, indicating a 86.42% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.2 per share and a revenue of $4.53 billion, signifying shifts of +81.82% and +42.08%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Teradyne. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 past month, there's been a 1.59% rise in the Zacks Consensus EPS estimate. Teradyne presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Teradyne currently has a Forward P/E ratio of 51.93. Its industry sports an average Forward P/E of 25.44, so one might conclude that Teradyne is trading at a premium comparatively.
It is also worth noting that TER currently has a PEG ratio of 1.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Here's Why Teradyne (TER) Fell More Than Broader Market
Teradyne (TER - Free Report) closed at $369.46 in the latest trading session, marking a -1.22% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.14%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.57%.
Shares of the maker of wireless products, data storage and equipment to test semiconductors witnessed a loss of 10.97% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 4.82%, and the S&P 500's gain of 0.25%.
The investment community will be paying close attention to the earnings performance of Teradyne in its upcoming release. The company is slated to reveal its earnings on July 28, 2026. In that report, analysts expect Teradyne to post earnings of $2.04 per share. This would mark year-over-year growth of 257.89%. In the meantime, our current consensus estimate forecasts the revenue to be $1.22 billion, indicating a 86.42% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.2 per share and a revenue of $4.53 billion, signifying shifts of +81.82% and +42.08%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Teradyne. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 past month, there's been a 1.59% rise in the Zacks Consensus EPS estimate. Teradyne presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Teradyne currently has a Forward P/E ratio of 51.93. Its industry sports an average Forward P/E of 25.44, so one might conclude that Teradyne is trading at a premium comparatively.
It is also worth noting that TER currently has a PEG ratio of 1.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.