Teradyne (TER) closed the latest trading day at $80.98, indicating a +0.91% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.39%.
Shares of the maker of wireless products, data storage and equipment to test semiconductors witnessed a gain of 8.14% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 11.04% and outperforming the S&P 500's gain of 6.69%.
Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. The company is expected to report EPS of $0.54, down 37.21% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $646.05 million, down 11.49% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.16 per share and a revenue of $2.9 billion, representing changes of -1.86% and +2.89%, respectively, from the prior 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, there's been a 4.85% fall in the Zacks Consensus EPS estimate. Teradyne is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Teradyne currently has a Forward P/E ratio of 25.37. This represents a premium compared to its industry's average Forward P/E of 18.26.
Meanwhile, TER's PEG ratio is currently 3.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.63 at yesterday's closing price.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 151, finds itself in the bottom 39% echelons of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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