In the latest close session, Teradyne (TER) was up +1.12% at $231.74. The stock's change was more than the S&P 500's daily gain of 0.5%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.43%.
The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 15.22% in the past month, exceeding the Computer and Technology sector's loss of 0.15% and the S&P 500's gain of 0.18%.
The investment community will be closely monitoring the performance of Teradyne in its forthcoming earnings report. The company is scheduled to release its earnings on February 2, 2026. The company is forecasted to report an EPS of $1.36, showcasing a 43.16% upward movement from the corresponding quarter of the prior year. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.54 per share and revenue of $3.05 billion. These totals would mark changes of +9.94% and 0%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Teradyne. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.36% upward. Teradyne is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Teradyne is at present trading with a Forward P/E ratio of 44.99. This signifies a premium in comparison to the average Forward P/E of 24.89 for its industry.
Meanwhile, TER's PEG ratio is currently 1.65. 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 Electronics - Miscellaneous Products was holding an average PEG ratio of 1.83 at yesterday's closing price.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 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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