Teradyne (TER) closed at $222.48 in the latest trading session, marking a -2.78% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.34%. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 14.44% outpaced the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
The investment community will be closely monitoring the performance of Teradyne in its forthcoming earnings report. The company is expected to report EPS of $1.36, up 43.16% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $968.79 million, indicating a 28.68% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.51 per share and a revenue of $3.05 billion, demonstrating changes of +9.01% and 0%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Teradyne. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Currently, Teradyne is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Teradyne currently has a Forward P/E ratio of 45.06. For comparison, its industry has an average Forward P/E of 23.63, which means Teradyne is trading at a premium to the group.
Investors should also note that TER has a PEG ratio of 1.65 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. By the end of yesterday's trading, the Electronics - Miscellaneous Products industry had an average PEG ratio of 1.69.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Teradyne, Inc. (TER): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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