Teradyne Inc. TER is currently one of the top-performing stocks in the technology sector. An increase in share price and strong fundamentals signals its bull run. Therefore, if you haven't taken advantage of the share price appreciation yet, it's time you add the stock to your portfolio now.
The company has performed extremely well over the past few months and has the potential to carry on the momentum in the near term as well.
Why an Attractive Pick?
Share Price Appreciation: A glimpse of its price trend shows that the stock has had an impressive run on the bourses over the past two years. Teradyne has returned 60.7%, comparing favorably with the S&P 500 market gain of 35.1%.
Solid Rank & Momentum Score: Teradyne currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Positive Earnings Surprise History: Teradyne has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, recording an average positive earnings surprise of 22.11%.
Strong Growth Prospects: The Zacks Consensus Estimate for 2019 earnings of $2.67 reflects year-over-year growth of 28%.The stock has a long-term expected earnings per share growth rate of 13.2%.
Growth Drivers: Key growth drivers for Teradyne are product differentiation, operational flexibility, along with a specific focus on fast-growing segments and regions.
Moreover, strong memory test demand market is driving growth for the company. The demand is being driven by both traditional flash package test customers as well as the company's Magnum wafer test product. Also, Soc and Wi-Fi test demand for smartphone applications is expected to soar in the near future.
The growing need for more automation in the industrial market is driving the sales of Universal Robots. New products launched by Universal Robots include the e-Series of cobots, which provides higher performance data processing, enhanced ease-of-use software, along with category 3 safety certification, and is used in a wide range of tasks like gluing, polishing, surface inspection as well as light assembly.
We believe that Teradyne is in a great position to grow sustainably and profitably based on its strong pipeline of innovative products, supported by expanding opportunities in industrial automation markets.
Teradyne, Inc. Price and Consensus
Teradyne, Inc. Price and Consensus | Teradyne, Inc. Quote
Other Stocks to Consider
Other top-ranked stocks in the technology sector include eXp World Holdings, Inc. EXPI , ANGI Homeservices Inc. ANGI and Internap Corporation INAP , each carrying a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth for eXp World Holdings, ANGI Homeservices and Internap is currently projected to be 10%, 25% and 2%, respectively.
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