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Here's Why Teradyne (TER) Fell More Than Broader Market
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In the latest trading session, Teradyne (TER - Free Report) closed at $383.85, marking a -4.68% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.06%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq lost 0.44%.
Shares of the maker of wireless products, data storage and equipment to test semiconductors have appreciated by 6.05% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.85%, and the S&P 500's gain of 2.36%.
The investment community will be paying close attention to the earnings performance of Teradyne in its upcoming release. The company is expected to report EPS of $2.04, up 140% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.27 billion, indicating a 65.2% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.11 per share and a revenue of $5.07 billion, signifying shifts of +130.05% and +58.85%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Teradyne. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Teradyne holds a Zacks Rank of #3 (Hold).
Looking at valuation, Teradyne is presently trading at a Forward P/E ratio of 44.22. This denotes a premium relative to the industry average Forward P/E of 20.44.
One should further note that TER currently holds a PEG ratio of 0.81. 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 average PEG ratio for the Electronics - Miscellaneous Products industry stood at 1.27 at the close of the market yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 55, finds itself in the top 23% echelons of all 250+ industries.
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.
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 trading session, Teradyne (TER - Free Report) closed at $383.85, marking a -4.68% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.06%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq lost 0.44%.
Shares of the maker of wireless products, data storage and equipment to test semiconductors have appreciated by 6.05% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.85%, and the S&P 500's gain of 2.36%.
The investment community will be paying close attention to the earnings performance of Teradyne in its upcoming release. The company is expected to report EPS of $2.04, up 140% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.27 billion, indicating a 65.2% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.11 per share and a revenue of $5.07 billion, signifying shifts of +130.05% and +58.85%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Teradyne. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Teradyne holds a Zacks Rank of #3 (Hold).
Looking at valuation, Teradyne is presently trading at a Forward P/E ratio of 44.22. This denotes a premium relative to the industry average Forward P/E of 20.44.
One should further note that TER currently holds a PEG ratio of 0.81. 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 average PEG ratio for the Electronics - Miscellaneous Products industry stood at 1.27 at the close of the market yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 55, finds itself in the top 23% echelons of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.