Yahoo Finance Teradyne (TER) Ascends While Market Falls: Some Facts to Note
The latest trading session saw Teradyne (TER) ending at $148.45, denoting a +0.34% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.18%.
Coming into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 5.49% in the past month. In that same time, the Computer and Technology sector gained 6.77%, while the S&P 500 gained 3.15%.
The investment community will be closely monitoring the performance of Teradyne in its forthcoming earnings report. The company is predicted to post an EPS of $0.76, indicating a 3.8% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $703.04 million, up 2.72% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.04 per share and a revenue of $2.77 billion, signifying shifts of +3.75% and +3.37%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Teradyne. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Teradyne is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Teradyne is currently being traded at a Forward P/E ratio of 48.75. For comparison, its industry has an average Forward P/E of 24.99, which means Teradyne is trading at a premium to the group.
Meanwhile, TER's PEG ratio is currently 2.79. 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. The Electronics - Testing Equipment industry currently had an average PEG ratio of 2.7 as of yesterday's close.
The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.
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
