Teradyne (TER) ended the recent trading session at $420.12, demonstrating a -8.07% change from the preceding day’s closing price. This change lagged the S&P 500’s 1.44% loss on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 2.22%.
Shares of the maker of wireless products, data storage and equipment to test semiconductors witnessed a gain of 27.5% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.98%, and the S&P 500’s gain of 0.08%.
Market participants will be closely following the financial results of Teradyne in its upcoming release. The company’s upcoming EPS is projected at $1.99, signifying a 249.12% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.22 billion, indicating a 86.43% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.09 per share and a revenue of $4.53 billion, indicating changes of +79.04% and +42.08%, respectively, from the former year.
Any recent changes to analyst estimates for Teradyne should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 #1 (Strong Buy).
In terms of valuation, Teradyne is presently being traded at a Forward P/E ratio of 64.46. This signifies a premium in comparison to the average Forward P/E of 31.46 for its industry.
It is also worth noting that TER currently has a PEG ratio of 1.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The average PEG ratio for the Electronics – Miscellaneous Products industry stood at 1.79 at the close of the market yesterday.
