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Teradyne (TER) Outpaces Stock Market Gains: What You Should Know

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Teradyne (TER - Free Report) closed the most recent trading day at $47, moving +1.78% from the previous trading session. This change outpaced the S&P 500's 0.47% gain on the day. Elsewhere, the Dow gained 0.95%, while the tech-heavy Nasdaq added 2.3%.

Coming into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had lost 32.07% in the past month. In that same time, the Computer and Technology sector lost 28.18%, while the S&P 500 lost 28.7%.

TER will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.92, up 70.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $689.49 million, up 39.55% from the year-ago period.

TER's full-year Zacks Consensus Estimates are calling for earnings of $3.24 per share and revenue of $2.57 billion. These results would represent year-over-year changes of +13.29% and +11.91%, respectively.

It is also important to note the recent changes to analyst estimates for TER. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.22% lower. TER is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note TER's current valuation metrics, including its Forward P/E ratio of 14.25. This represents a no noticeable deviation compared to its industry's average Forward P/E of 14.25.

We can also see that TER currently has a PEG ratio of 1.08. 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. TER's industry had an average PEG ratio of 1.08 as of yesterday's close.

The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TER in the coming trading sessions, be sure to utilize Zacks.com.


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