In the latest trading session, Teradyne (TER) closed at $122.41, marking a +0.76% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.57%. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq lost 0.61%.
Coming into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had gained 2.38% in the past month. In that same time, the Computer and Technology sector gained 1.94%, while the S&P 500 gained 0.83%.
Investors will be hoping for strength from TER as it approaches its next earnings release. The company is expected to report EPS of $0.99, up 12.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $716.56 million, up 9.46% from the year-ago period.
Any recent changes to analyst estimates for TER should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. TER currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TER currently has a Forward P/E ratio of 25.12. Its industry sports an average Forward P/E of 30.83, so we one might conclude that TER is trading at a discount comparatively.
We can also see that TER currently has a PEG ratio of 1.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Electronics – Testing Equipment industry currently had an average PEG ratio of 3.69 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 242, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.