Teradyne (TER) ended the recent trading session at $93.70, demonstrating a -1.18% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.06% for the day. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq lost 0.39%.
The maker of wireless products, data storage and equipment to test semiconductors's shares have seen an increase of 8.54% over the last month, not keeping up with the Computer and Technology sector's gain of 9.6% and outstripping the S&P 500's gain of 5.88%.
The investment community will be closely monitoring the performance of Teradyne in its forthcoming earnings report. The company is scheduled to release its earnings on July 29, 2025. On that day, Teradyne is projected to report earnings of $0.54 per share, which would represent a year-over-year decline of 37.21%. Simultaneously, our latest consensus estimate expects the revenue to be $646.05 million, showing a 11.49% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.13 per share and a revenue of $2.89 billion, demonstrating changes of -2.8% and +2.41%, respectively, from the preceding year.
Any recent changes to analyst estimates for Teradyne should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.19% lower. Teradyne is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Teradyne is currently trading at a Forward P/E ratio of 30.34. This expresses a premium compared to the average Forward P/E of 18.85 of its industry.
It's also important to note that TER currently trades at a PEG ratio of 4.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Electronics - Miscellaneous Products stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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