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The most recent trading session ended with Teradyne (TER) standing at $109.86, reflecting a +0.96% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 1.59%. At the same time, the Dow added 1.39%, and the tech-heavy Nasdaq gained 1.63%.
Shares of the maker of wireless products, data storage and equipment to test semiconductors have depreciated by 5.45% over the course of the past month, underperforming the Computer and Technology sector's loss of 3.43% and the S&P 500's loss of 2.42%.
Market participants will be closely following the financial results of Teradyne in its upcoming release. The company is predicted to post an EPS of $0.61, indicating a 19.61% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $683.57 million, up 13.96% from the year-ago period.
TER's full-year Zacks Consensus Estimates are calling for earnings of $3.88 per share and revenue of $3.21 billion. These results would represent year-over-year changes of +20.5% and +13.77%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Teradyne. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 5.3% lower within the past month. Teradyne is currently a Zacks Rank #3 (Hold).
In the context of valuation, Teradyne is at present trading with a Forward P/E ratio of 28.03. For comparison, its industry has an average Forward P/E of 19.49, which means Teradyne is trading at a premium to the group.
Investors should also note that TER has a PEG ratio of 2.59 right now. 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 1.42 as trading concluded yesterday.