Teradyne (TER) closed at $216.31 in the latest trading session, marking a -2.77% move from the prior day. This move lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.44%.
The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 9.05% in the past month, exceeding the Computer and Technology sector's loss of 0.69% and the S&P 500's gain of 0.86%.
The upcoming earnings release of Teradyne will be of great interest to investors. On that day, Teradyne is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 43.16%. At the same time, our most recent consensus estimate is projecting a revenue of $968.79 million, reflecting a 28.68% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.51 per share and a revenue of $3.05 billion, indicating changes of +9.01% and 0%, respectively, from the former 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. At present, Teradyne boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Teradyne is currently exchanging hands at a Forward P/E ratio of 43.81. For comparison, its industry has an average Forward P/E of 23.78, which means Teradyne is trading at a premium to the group.
One should further note that TER currently holds a PEG ratio of 1.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Miscellaneous Products industry was having an average PEG ratio of 1.68.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 86, putting it in the top 36% 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.
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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