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The most recent trading session ended with Teradyne (TER) standing at $89.95, reflecting a -1.15% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.01%, and the technology-centric Nasdaq increased by 0.46%.
Heading into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had lost 19.88% over the past month, lagging the Computer and Technology sector's loss of 5.94% and the S&P 500's loss of 3.59% in that time.
Market participants will be closely following the financial results of Teradyne in its upcoming release. In that report, analysts expect Teradyne to post earnings of $0.61 per share. This would mark year-over-year growth of 19.61%. 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 $3.38 per share and revenue of $2.99 billion. These results would represent year-over-year changes of +4.97% and +6.2%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Teradyne. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 13.01% lower within the past month. Currently, Teradyne is carrying a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Teradyne has a Forward P/E ratio of 26.94 right now. Its industry sports an average Forward P/E of 19.39, so one might conclude that Teradyne is trading at a premium comparatively.
Also, we should mention that TER has a PEG ratio of 4.03. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Electronics - Miscellaneous Products stocks are, on average, holding a PEG ratio of 1.47 based on yesterday's closing prices.