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Teradyne (TER) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest close session, Teradyne (TER - Free Report) was down 5.25% at $325.20. The stock's change was less than the S&P 500's daily loss of 1.09%. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 2.15%.

Shares of the maker of wireless products, data storage and equipment to test semiconductors witnessed a loss of 2.81% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.99%, and the S&P 500's gain of 2.44%.

Market participants will be closely following the financial results of Teradyne in its upcoming release. The company plans to announce its earnings on October 27, 2026. The company is expected to report EPS of $2.04, up 140% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.27 billion, up 65.2% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.11 per share and a revenue of $5.07 billion, indicating changes of +130.05% and +58.85%, respectively, from the former year.

Any recent changes to analyst estimates for Teradyne should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Teradyne possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Teradyne is currently trading at a Forward P/E ratio of 37.69. This indicates a premium in contrast to its industry's Forward P/E of 19.53.

It's also important to note that TER currently trades at a PEG ratio of 0.69. 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 1.25 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 42, placing it within the top 18% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

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