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Teradyne (TER) Stock Declines While Market Improves: Some Information for Investors

In the latest trading session, Teradyne (TER) closed at $147.64, marking a -0.82% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.23%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, added 0.34%.

Prior to today's trading, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 12.81% over the past month. This has outpaced the Computer and Technology sector's loss of 2.01% and the S&P 500's gain of 3.96% in that time.

The investment community will be closely monitoring the performance of Teradyne in its forthcoming earnings report. 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.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.04 per share and revenue of $2.77 billion, which would represent changes of +3.75% and +3.37%, respectively, from the prior year.

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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Teradyne. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.08% higher. Teradyne is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Teradyne's current valuation metrics, including its Forward P/E ratio of 49.05. This indicates a premium in contrast to its industry's Forward P/E of 26.24.

It is also worth noting that TER currently has a PEG ratio of 2.81. 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. Electronics - Testing Equipment stocks are, on average, holding a PEG ratio of 2.78 based on yesterday's closing prices.

The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Teradyne, Inc. (TER) : Free Stock Analysis Report

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