Teradyne (TER) closed the most recent trading day at $141.03, moving +2.96% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.4%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.66%.
Shares of the maker of wireless products, data storage and equipment to test semiconductors have appreciated by 20.22% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.27%, and the S&P 500's gain of 1.02%.
Investors will be eagerly watching for the performance of Teradyne in its upcoming earnings disclosure. The company is expected to report EPS of $0.78, down 13.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $744.48 million, up 0.97% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.14 per share and a revenue of $2.89 billion, signifying shifts of -2.48% and +2.46%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Teradyne. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.32% higher within the past month. Teradyne is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Teradyne is currently being traded at a Forward P/E ratio of 43.61. This represents a premium compared to its industry average Forward P/E of 21.15.
Also, we should mention that TER has a PEG ratio of 2.87. 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. TER's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 56, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
