Teradyne (TER) ended the recent trading session at $229.14, demonstrating a -1.19% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.63%, while the tech-heavy Nasdaq appreciated by 0.91%.
The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 16.8% in the past month, exceeding the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 0.71%.
Investors will be eagerly watching for the performance of Teradyne in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 2, 2026. The company's earnings per share (EPS) are projected to be $1.36, reflecting a 43.16% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $968.79 million, indicating a 28.68% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.54 per share and revenue of $3.05 billion, indicating changes of +9.94% and 0%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Teradyne should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. Currently, Teradyne is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Teradyne is currently exchanging hands at a Forward P/E ratio of 45.52. This valuation marks a premium compared to its industry average Forward P/E of 25.82.
Also, we should mention that TER has a PEG ratio of 1.67. 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 1.83.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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