Teradyne (TER) closed the most recent trading day at $91.96, moving -1.15% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.32% for the day. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.26%.
Heading into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 7.64% over the past month, outpacing the Computer and Technology sector's gain of 7.22% and the S&P 500's gain of 4.51%.
Investors will be eagerly watching for the performance of Teradyne in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 29, 2025. The company is predicted to post an EPS of $0.54, indicating a 37.21% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $646.05 million, down 11.49% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.17 per share and revenue of $2.91 billion. These totals would mark changes of -1.55% and +3.18%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Teradyne. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.21% higher. Teradyne presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Teradyne is holding a Forward P/E ratio of 29.35. For comparison, its industry has an average Forward P/E of 18.94, which means Teradyne is trading at a premium to the group.
Investors should also note that TER has a PEG ratio of 4.06 right now. 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. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.78 at yesterday's closing price.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Teradyne, Inc. (TER): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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