Teradyne (TER) closed the most recent trading day at $193.37, moving -5.2% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.07% for the day. On the other hand, the Dow registered a loss of 0.51%, and the technology-centric Nasdaq decreased by 1.69%.
The stock of maker of wireless products, data storage and equipment to test semiconductors has risen by 20.27% in the past month, leading the Computer and Technology sector's gain of 1.6% and the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Teradyne in its forthcoming earnings report. The company's upcoming EPS is projected at $1.36, signifying a 43.16% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $970.1 million, indicating a 28.85% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.51 per share and revenue of $3.05 billion, which would represent changes of +9.01% and +8.06%, respectively, from the prior year.
Any recent changes to analyst estimates for Teradyne should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 1.41% rise in the Zacks Consensus EPS estimate. Currently, Teradyne is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, Teradyne is holding a Forward P/E ratio of 58.13. This indicates a premium in contrast to its industry's Forward P/E of 24.48.
We can additionally observe that TER currently boasts a PEG ratio of 2.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 1.95.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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