Teradyne (TER) Outpaces Stock Market Gains: What You Should Know
Teradyne (TER) closed the most recent trading day at $79.20, moving +1.91% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.61%. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, added 1.87%.
Coming into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had lost 8.33% in the past month. In that same time, the Computer and Technology sector lost 4.69%, while the S&P 500 lost 4.08%.
TER will be looking to display strength as it nears its next earnings release. On that day, TER is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 44.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $785.96 million, up 35.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.87 per share and revenue of $2.85 billion, which would represent changes of +35.31% and +23.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TER. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TER is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, TER is holding a Forward P/E ratio of 20.08. For comparison, its industry has an average Forward P/E of 30.31, which means TER is trading at a discount to the group.
Investors should also note that TER has a PEG ratio of 1.2 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Testing Equipment was holding an average PEG ratio of 3.03 at yesterday's closing price.
The Electronics - Testing Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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