Yahoo Finance Teradyne (TER) Suffers a Larger Drop Than the General Market: Key Insights
Teradyne (TER) ended the recent trading session at $143.23, demonstrating a -1.49% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.02%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 0.09%.
Shares of the maker of wireless products, data storage and equipment to test semiconductors witnessed a gain of 20.73% over the previous month, beating the performance of the Computer and Technology sector with its gain of 8.04% and the S&P 500's gain of 4.59%.
Market participants will be closely following the financial results of Teradyne in its upcoming release. In that report, analysts expect Teradyne to post earnings of $0.76 per share. This would mark a year-over-year decline of 3.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $703.04 million, up 2.72% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.04 per share and a revenue of $2.77 billion, demonstrating changes of +3.75% and +3.37%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Teradyne. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. The Zacks Consensus EPS estimate has moved 1.5% higher within the past month. Teradyne is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Teradyne is presently being traded at a Forward P/E ratio of 47.9. This expresses a premium compared to the average Forward P/E of 26.15 of its industry.
Also, we should mention that TER has a PEG ratio of 2.74. 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 - Testing Equipment was holding an average PEG ratio of 2.7 at yesterday's closing price.
The Electronics - Testing Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Teradyne, Inc. (TER) : Free Stock Analysis Report
