Yahoo Finance Teradyne (TER) Exceeds Market Returns: Some Facts to Consider
In the latest market close, Teradyne (TER) reached $147.57, with a +0.48% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.3%.
Prior to today's trading, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 3.52% over the past month. This has lagged the Computer and Technology sector's gain of 6.18% and outpaced the S&P 500's gain of 3.38% in that time.
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 $0.76, showcasing a 3.8% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $703.04 million, reflecting a 2.72% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.04 per share and a revenue of $2.77 billion, indicating changes of +3.75% and +3.37%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Teradyne. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Teradyne is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Teradyne is currently trading at a Forward P/E ratio of 48.39. This denotes a premium relative to the industry's average Forward P/E of 24.91.
It is also worth noting that TER currently has a PEG ratio of 2.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Electronics - Testing Equipment industry was having an average PEG ratio of 2.67.
The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Teradyne, Inc. (TER) : Free Stock Analysis Report
