The latest trading session saw Teradyne (TER – Free Report) ending at $137.15, denoting a -1.2% adjustment from its last day’s close. This change lagged the S&P 500’s 0.16% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Shares of the maker of wireless products, data storage and equipment to test semiconductors have appreciated by 14.1% over the course of the past month, outperforming the Computer and Technology sector’s loss of 0.39% and the S&P 500’s loss of 2.7%.
Market participants will be closely following the financial results of Teradyne in its upcoming release. The company’s upcoming EPS is projected at $0.90, signifying a 13.92% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $740.68 million, indicating a 10.45% increase compared to the same quarter of the previous year.
Investors should also note any recent changes to analyst estimates for Teradyne. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.35% higher. Teradyne presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Teradyne is currently exchanging hands at a Forward P/E ratio of 33.33. This represents a premium compared to its industry’s average Forward P/E of 19.2.
We can additionally observe that TER currently boasts a PEG ratio of 2.28. 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 – Miscellaneous Products industry had an average PEG ratio of 1.58 as trading concluded yesterday.
The Electronics – Miscellaneous Products industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
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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