In the latest market close, Teradyne (TER) reached $82.60, with a -0.22% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 1.01%, and the technology-dominated Nasdaq saw a decrease of 0.14%.
Coming into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had lost 24.65% in the past month. In that same time, the Computer and Technology sector lost 8.88%, while the S&P 500 lost 6.22%.
The investment community will be paying close attention to the earnings performance of Teradyne in its upcoming release. The company's upcoming EPS is projected at $0.61, signifying a 19.61% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $683.57 million, indicating a 13.96% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.38 per share and revenue of $2.99 billion. These totals would mark changes of +4.97% and +6.2%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Teradyne. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 13.01% lower. Right now, Teradyne possesses a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Teradyne currently has a Forward P/E ratio of 24.51. This signifies a premium in comparison to the average Forward P/E of 18.6 for its industry.
Also, we should mention that TER has a PEG ratio of 3.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Electronics - Miscellaneous Products industry stood at 1.36 at the close of the market yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 40% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many 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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