In the latest trading session, Teradyne (TER) closed at $86.43, marking a -1.43% move from the previous day. This change lagged the S&P 500's daily loss of 0.84%. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq depreciated by 0.91%.
The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 5.98% in the past month, exceeding the Computer and Technology sector's loss of 0% and the S&P 500's gain of 1.44%.
Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. In that report, analysts expect Teradyne to post earnings of $0.54 per share. This would mark a year-over-year decline of 37.21%. Alongside, our most recent consensus estimate is anticipating revenue of $646.05 million, indicating a 11.49% downward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.16 per share and revenue of $2.9 billion. These totals would mark changes of -1.86% and +2.89%, respectively, from last 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 business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. The Zacks Consensus EPS estimate has moved 0.59% lower within the past month. Teradyne presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Teradyne is currently being traded at a Forward P/E ratio of 27.72. Its industry sports an average Forward P/E of 19.49, so one might conclude that Teradyne is trading at a premium comparatively.
Investors should also note that TER has a PEG ratio of 3.83 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TER's industry had an average PEG ratio of 1.85 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 37% 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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