Why Teradyne (TER) Outpaced the Stock Market Today

Teradyne (TER) closed the latest trading day at $88.72, indicating a +2.21% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.63%.Shares of the maker of wireless products, data storage and equipment to test semiconductors have appreciated by 4.5% over the course of the past month, underperforming the Computer and Technology sector's gain of 11.3% and the S&P 500's gain of 6.29%.Investors will be eagerly watching for the performance of Teradyne in its upcoming earnings disclosure. In that report, analysts expect Teradyne to post earnings of $0.54 per share. This would mark a year-over-year decline of 37.21%. Meanwhile, our latest consensus estimate is calling for revenue of $646.05 million, down 11.49% from the prior-year quarter.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.16 per share and a revenue of $2.9 billion, indicating changes of -1.86% and +2.89%, respectively, from the former year.It's also important for investors to be aware of any recent modifications to analyst estimates for Teradyne. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.59% lower. Currently, Teradyne is carrying a Zacks Rank of #3 (Hold).With respect to valuation, Teradyne is currently being traded at a Forward P/E ratio of 27.44. This expresses a premium compared to the average Forward P/E of 18.9 of its industry.Meanwhile, TER's PEG ratio is currently 3.8. 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 Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.69 as of yesterday's close.The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 35% of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teradyne, Inc. (TER): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks