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The latest trading session saw Teradyne (TER) ending at $137.15, denoting a -1.2% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.
The maker of wireless products, data storage and equipment to test semiconductors's stock has climbed by 18.62% in the past month, exceeding the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 2.8%.
The upcoming earnings release of Teradyne will be of great interest to investors. The company is forecasted to report an EPS of $0.90, showcasing a 13.92% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $740.68 million, up 10.45% from the prior-year quarter.
Any recent changes to analyst estimates for Teradyne should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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, there's been a 0.35% rise in the Zacks Consensus EPS estimate. Right now, Teradyne possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Teradyne is presently being traded at a Forward P/E ratio of 33.74. This signifies a premium in comparison to the average Forward P/E of 19.77 for its industry.
We can also see that TER currently has a PEG ratio of 2.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Electronics - Miscellaneous Products stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 174, positioning it in the bottom 31% of all 250+ industries.