For Immediate Release
Chicago, IL – March 26, 2026 – Zacks Equity Research shares Teradyne TER as the Bull of the Day and Whirlpool WHR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Micron Technology, Inc. MU.
Here is a synopsis of all three stocks.
Bull of the Day:
Teradyne manufactures equipment used by other companies to test chips. The fastest-growing segment here is chips for AI data centers and accelerators, and more complex chips mean greater test demand, with AI chips among the most complex right now.
The company’s EPS outlook remains notably bright, keeping it at the highly coveted Zacks Rank #1 (Strong Buy).
Teradyne’s Bright AI Outlook
Teradyne shares have shown notable momentum throughout 2026 so far, gaining more than 65% and widely outperforming relative to the S&P 500 and the respective Zacks Tech Sector.
Growth expectations remain highly positive, with EPS expected to climb 29% in its current FY26 and an additional 16% in FY27. Sales are expected to climb 50% and 30% across FY26 and FY27, respectively.
Valuation does remain rich relative to history, with the current 50.8X forward 12-month earnings multiple nearly reflecting a five-year high. A growing contribution from higher-margin testing of complex AI chips is helpful to note here, with most of its growth in the latest reported period (2025 Q4) being driven by AI-related demand in compute and memory. That said, the stretched valuation can lead to volatility if any missteps occur or if the broader AI infrastructure story slows down.
Its upcoming release will provide clearer clarity on its current business momentum, with Zacks Consensus estimates forecasting 75% YoY sales growth on 160% higher earnings. The company has been delivering sizable beats lately, exceeding the Zacks Consensus EPS estimate by an average of 18% across its last four releases.
The company’s top line showed very strong acceleration in the above-mentioned release, with sales of $1.1 billion climbing by 44% year-over-year and 41% sequentially. The 44% YoY growth rate was the highest we’ve seen from Teradyne since 2021, underpinning the recent momentum nicely.
Keep a close eye on the 50-day moving average, which shares have largely followed closely over the past year. It’s a nice ‘line in the sand’ to keep note of concerning its recent momentum.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Teradyne would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Whirlpool is one of the world's largest manufacturers of home appliances. The company's portfolio of products can be broadly classified into laundry appliances, refrigerators and freezers, cooking appliances, and other small household appliances such as dishwashers and mixers.
The stock is a current Zacks Rank #5 (Strong Sell), with analysts slashing their EPS expectations across the board.
Whirlpool Sentiment Remains Rough
WHR’s latest quarterly results didn’t go a long way in turning sentiment around, with shares now down more than 40% over the last year. Concerning headline figures, sales of $3.8 billion fell 0.9% YoY alongside a 75% decline in earnings. Big dilution roughly a month following the above-mentioned release also led to a guidance cut, helping explain the sharp downward EPS revisions.
As we can see below, the company’s top line has been very soft over the past five years, seeing little to no growth. Leading the weak performance has been a collapse in discretionary spending across its appliances.
Though replacement demand has remained steady, a soft housing market relative to historical levels has led to a sharp decline in the demand for new appliances, which is where stronger margins are. In other words, if new houses aren’t being bought, neither are sets of new appliances.
Below is a chart illustrating the company’s gross margin on a trailing twelve-month basis, dating back five years.
Bottom Line
Negative earnings estimate revisions paint a challenging picture for the company’s shares in the near term.
Whirlpool is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Micron Plunges 14% After Blowout Q2 — Time to Buy the Dip?
After delivering an impressive fiscal second-quarter 2026 performance, shares of Micron Technology, Inc. declined 14.3% from $461.73 on March 18, 2026, to $395.53 by Tuesday. The pullback seems to be driven by investors’ concerns over how long the present demand-supply imbalance in specialized memory chips can be sustained, putting unnecessary short-term pressure on the stock.
However, Micron remains a clear beneficiary from the ongoing boom in artificial intelligence (AI), constrained industry supply, and pricing power, leading to record quarterly performance, strong forward guidance and robust cash flow. Taken together, these factors indicate why Micron remains a top long-term AI investment. Let’s see in detail why buying the dip may make sense –
Micron Shows Strong AI-Led Growth, Record Financial Momentum
Micron’s fiscal second-quarter 2026 revenue came in at $23.86 billion, up 196.4% from the year-ago quarter, and represents a 74.9% increase sequentially, according to investors.micron.com. The company’s revenue growth remained strong, following a 57% year-over-year jump in the fiscal first quarter of 2026. The company remains in a sustained uptrend rather than a short-term recovery.
Gross margin expanded sharply to 74.9% from 36.8% a year ago, with noteworthy improvements in operating margins and net income. These results indicate Micron’s dominant position in the semiconductor industry, driven by strong pricing power and rising demand for its high-value products such as AI-focused memory.
Micron’s high-bandwidth memory (HBM) chips are in strong demand due to their capability to manage massive workloads while delivering improved power efficiency. Their demand is expected to stay strong despite supply constraints, as more data center operators and hyperscalers ramp up their AI infrastructure.
CEO Sanjay Mehrotra believes that the demand-supply disparity in HBM chips could further push prices higher, benefiting the company in the long run. Micron expects fiscal third-quarter 2026 revenues to reach $33.5 billion, with gross margins around 81%, signaling another massive jump and underscoring its strong financial momentum.
Micron is also generating billions in surplus cash, something uncommon during expansion phases. In the second quarter of 2026, its adjusted free cash flow reached $6.9 billion, providing ample room to fund further growth initiatives and reduce debt.
Micron Stock to Buy Hand Over Fist
Micron is seeing strong AI-driven revenue growth, expanding margins, rising pricing power, improving financial strength, and strong cash generation that supports its growth trajectory. Micron has consistently delivered stronger profits, reflected in its return on equity (ROE) of 42.6% compared with the Computer - Integrated Systems industry’s ROE of 16.5%.
All these make Micron a compelling buy for the long run. Moreover, buying Micron’s shares is relatively more affordable than its peers, giving investors a potential advantage. Per the price/earnings ratio, MU trades at 9.42 forward earnings. In comparison, the industry’s forward earnings multiple is 14.38.
Micron currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
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