To get ready for earnings season, look for stocks in or near a potential buy zone ahead of their next quarterly report. Teradyne ( TER ) currently fits that bill. It's expected to report on Jan. 23.
It's trading about 2% above a 44.73 buy point from a third-stage flat base .
[ibd-display-video id=2881825 width=50 float=left autostart=true] Be aware that buying a stock close to earnings is risky, since an EPS or sales miss could send it sharply lower. You can reduce your exposure by waiting to see the actual numbers and the market's reaction. Using an options strategy during earnings season is another way to put yourself in a position to profit, while minimizing the potential downside.
Teradyne showed 64% EPS growth in its most recent report, while sales growth came in at 23%.
Consensus analyst estimates call for EPS growth of 6% for the quarter, and 47% growth for the full year. EPS estimates for the full year were recently revised higher.
Teradyne has a 96 Composite Rating and holds the No. 4 rank among its peers in the Electronics-Semiconductor Equipment industry group. Applied Materials ( AMAT ) is the No. 1-ranked stock within the group.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.