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In the latest market close, Teradyne (TER) reached $82.60, with a -0.22% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 1.01%, and the technology-dominated Nasdaq saw a decrease of 0.14%.
Coming into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had lost 24.65% in the past month. In that same time, the Computer and Technology sector lost 8.88%, while the S&P 500 lost 6.22%.
The investment community will be paying close attention to the earnings performance of Teradyne in its upcoming release. The company's upcoming EPS is projected at $0.61, signifying a 19.61% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $683.57 million, indicating a 13.96% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.38 per share and revenue of $2.99 billion. These totals would mark changes of +4.97% and +6.2%, respectively, from last year.
Investors might also notice 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 13.01% lower. Right now, Teradyne possesses a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Teradyne currently has a Forward P/E ratio of 24.51. This signifies a premium in comparison to the average Forward P/E of 18.6 for its industry.
Also, we should mention that TER has a PEG ratio of 3.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Electronics - Miscellaneous Products industry stood at 1.36 at the close of the market yesterday.