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Teradyne (TER) Outpaces Stock Market Gains: What You Should Know
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Teradyne (TER - Free Report) closed at $109.61 in the latest trading session, marking a +1.32% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.12%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.08%.
Heading into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had lost 2.11% over the past month, lagging the Computer and Technology sector's gain of 2.22% and the S&P 500's gain of 4.63% in that time.
Investors will be hoping for strength from Teradyne as it approaches its next earnings release. The company is expected to report EPS of $0.87, down 21.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $744.03 million, down 4.81% from the year-ago period.
TER's full-year Zacks Consensus Estimates are calling for earnings of $4.86 per share and revenue of $3.45 billion. These results would represent year-over-year changes of -18.73% and -6.71%, respectively.
Investors should also note any recent changes to analyst estimates for Teradyne. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.95% lower. Teradyne is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Teradyne's current valuation metrics, including its Forward P/E ratio of 22.25. This represents a discount compared to its industry's average Forward P/E of 23.81.
It is also worth noting that TER currently has a PEG ratio of 2.01. 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 was holding an average PEG ratio of 2.28 at yesterday's closing price.
The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TER in the coming trading sessions, be sure to utilize Zacks.com.
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Teradyne (TER) Outpaces Stock Market Gains: What You Should Know
Teradyne (TER - Free Report) closed at $109.61 in the latest trading session, marking a +1.32% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.12%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.08%.
Heading into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had lost 2.11% over the past month, lagging the Computer and Technology sector's gain of 2.22% and the S&P 500's gain of 4.63% in that time.
Investors will be hoping for strength from Teradyne as it approaches its next earnings release. The company is expected to report EPS of $0.87, down 21.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $744.03 million, down 4.81% from the year-ago period.
TER's full-year Zacks Consensus Estimates are calling for earnings of $4.86 per share and revenue of $3.45 billion. These results would represent year-over-year changes of -18.73% and -6.71%, respectively.
Investors should also note any recent changes to analyst estimates for Teradyne. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.95% lower. Teradyne is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Teradyne's current valuation metrics, including its Forward P/E ratio of 22.25. This represents a discount compared to its industry's average Forward P/E of 23.81.
It is also worth noting that TER currently has a PEG ratio of 2.01. 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 was holding an average PEG ratio of 2.28 at yesterday's closing price.
The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TER in the coming trading sessions, be sure to utilize Zacks.com.