Teradyne (TER) ended the recent trading session at $97.05, demonstrating a -1.59% change from the preceding day's closing price. This change lagged the S&P 500's 0.33% loss on the day. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%.
The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 14.8% in the past month, exceeding the Computer and Technology sector's gain of 5.24% and the S&P 500's gain of 4.07%.
Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. The company is expected to report EPS of $0.54, down 37.21% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $646.05 million, indicating a 11.49% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.17 per share and revenue of $2.91 billion, which would represent changes of -1.55% and +3.18%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Teradyne. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. As of now, Teradyne holds a Zacks Rank of #3 (Hold).
In the context of valuation, Teradyne is at present trading with a Forward P/E ratio of 31.11. This indicates a premium in contrast to its industry's Forward P/E of 19.35.
Also, we should mention that TER has a PEG ratio of 4.3. 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 – Miscellaneous Products industry was having an average PEG ratio of 1.8.
The Electronics – Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 36% of all 250+ industries.
