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Teradyne (TER) Gains As Market Dips: What You Should Know

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·3 min read
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Teradyne (TER) closed the most recent trading day at $115.68, moving +1.46% from the previous trading session. This change outpaced the S&P 500's 0.13% loss on the day. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.54%.

Coming into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 12.69% in the past month. In that same time, the Computer and Technology sector gained 4.87%, while the S&P 500 gained 3.5%.

TER will be looking to display strength as it nears its next earnings release. On that day, TER is projected to report earnings of $0.99 per share, which would represent year-over-year growth of 12.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $716.55 million, up 9.46% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.49 per share and revenue of $3.08 billion. These totals would mark changes of +56.99% and +34.18%, respectively, from last year.

Any recent changes to analyst estimates for TER should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TER currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that TER has a Forward P/E ratio of 25.37 right now. This valuation marks a discount compared to its industry's average Forward P/E of 31.89.

Meanwhile, TER's PEG ratio is currently 1.2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Electronics - Testing Equipment stocks are, on average, holding a PEG ratio of 3.8 based on yesterday's closing prices.

The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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