Teradyne (TER) ended the recent trading session at $97.05, demonstrating a -1.59% change from the preceding day's closing price. This change lagged the S&P 500's 0.33% loss on the day. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%.
The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 14.8% in the past month, exceeding the Computer and Technology sector's gain of 5.24% and the S&P 500's gain of 4.07%.
Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. The company is expected to report EPS of $0.54, down 37.21% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $646.05 million, indicating a 11.49% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.17 per share and revenue of $2.91 billion, which would represent changes of -1.55% and +3.18%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Teradyne. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, the Zacks Consensus EPS estimate has moved 0.21% higher. As of now, Teradyne holds a Zacks Rank of #3 (Hold).
In the context of valuation, Teradyne is at present trading with a Forward P/E ratio of 31.11. This indicates a premium in contrast to its industry's Forward P/E of 19.35.
Also, we should mention that TER has a PEG ratio of 4.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Electronics - Miscellaneous Products industry was having an average PEG ratio of 1.8.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Teradyne, Inc. (TER): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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