Teradyne (TER) closed at $365.50 in the latest trading session, marking a -1.25% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.18%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq increased by 1.96%.
Heading into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 24.09% over the past month, outpacing the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.93%.
The upcoming earnings release of Teradyne will be of great interest to investors. The company is forecasted to report an EPS of $2.08, showcasing a 177.33% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.2 billion, indicating a 75.28% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.07 per share and a revenue of $4.19 billion, indicating changes of +53.28% and +31.28%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Teradyne. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Teradyne is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Teradyne is currently exchanging hands at a Forward P/E ratio of 61.01. This represents a premium compared to its industry average Forward P/E of 26.31.
It is also worth noting that TER currently has a PEG ratio of 2.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Miscellaneous Products industry had an average PEG ratio of 1.57 as trading concluded yesterday.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TER in the coming trading sessions, be sure to utilize Zacks.com.
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Teradyne, Inc. (TER): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).