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Teradyne (TER) Stock Sinks As Market Gains: Here's Why
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Teradyne (TER - Free Report) closed the most recent trading day at $153.48, moving -0.45% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.07%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.14%.
The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 7.75% in the past month, falling short of the Computer and Technology sector's gain of 8.61% and outpacing the S&P 500's gain of 4.34%.
Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.76, marking a 3.8% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $703.04 million, indicating a 2.72% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.04 per share and a revenue of $2.77 billion, representing changes of +3.75% and +3.37%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Teradyne. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Teradyne is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Teradyne is currently trading at a Forward P/E ratio of 50.8. This indicates a premium in contrast to its industry's Forward P/E of 24.42.
We can also see that TER currently has a PEG ratio of 2.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TER's industry had an average PEG ratio of 2.64 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 99, which puts it in the top 40% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Teradyne (TER) Stock Sinks As Market Gains: Here's Why
Teradyne (TER - Free Report) closed the most recent trading day at $153.48, moving -0.45% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.07%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.14%.
The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 7.75% in the past month, falling short of the Computer and Technology sector's gain of 8.61% and outpacing the S&P 500's gain of 4.34%.
Analysts and investors alike will be keeping a close eye on the performance of Teradyne in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.76, marking a 3.8% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $703.04 million, indicating a 2.72% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.04 per share and a revenue of $2.77 billion, representing changes of +3.75% and +3.37%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Teradyne. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Teradyne is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Teradyne is currently trading at a Forward P/E ratio of 50.8. This indicates a premium in contrast to its industry's Forward P/E of 24.42.
We can also see that TER currently has a PEG ratio of 2.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TER's industry had an average PEG ratio of 2.64 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 99, which puts it in the top 40% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.