Teradyne (TER) closed the most recent trading day at $143.39, moving -1.44% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 1.89%. Meanwhile, the Dow lost 1.3%, and the Nasdaq, a tech-heavy index, lost 0.17%.
Coming into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had lost 10.61% in the past month. In that same time, the Computer and Technology sector lost 6.14%, while the S&P 500 lost 1.79%.
Wall Street will be looking for positivity from Teradyne as it approaches its next earnings report date. This is expected to be January 26, 2022. On that day, Teradyne is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 17.27%. Meanwhile, our latest consensus estimate is calling for revenue of $867.39 million, up 14.29% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Teradyne. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Teradyne is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Teradyne has a Forward P/E ratio of 23 right now. For comparison, its industry has an average Forward P/E of 25.43, which means Teradyne is trading at a discount to the group.
We can also see that TER currently has a PEG ratio of 1.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Electronics – Testing Equipment industry currently had an average PEG ratio of 2.83 as of yesterday’s close.
The Electronics – Testing Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
