In the latest close session, Teradyne (TER) was up +1.46% at $300.77. The stock's performance was ahead of the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 0.01%.
The stock of maker of wireless products, data storage and equipment to test semiconductors has fallen by 4.38% in the past month, lagging the Computer and Technology sector's loss of 3.04% and the S&P 500's loss of 2.26%.
Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.94, showcasing a 158.67% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.2 billion, indicating a 75.28% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.91 per share and revenue of $4.12 billion. These totals would mark changes of +49.24% and +29%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Teradyne. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.91% rise in the Zacks Consensus EPS estimate. Teradyne currently has a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Teradyne is currently exchanging hands at a Forward P/E ratio of 50.15. This indicates a premium in contrast to its industry's Forward P/E of 24.75.
We can also see that TER currently has a PEG ratio of 1.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Miscellaneous Products industry had an average PEG ratio of 1.57 as trading concluded yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 31, finds itself in the top 13% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much 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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