Teradyne (TER) closed the latest trading day at $88.87, indicating a -1.44% change from the previous session's end. This move lagged the S&P 500's daily loss of 1.07%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, lost 1.71%.
Prior to today's trading, shares of the maker of wireless products, data storage and equipment to test semiconductors had lost 20.38% over the past month. This has lagged the Computer and Technology sector's loss of 11.12% and the S&P 500's loss of 7.03% in that time.
Investors will be eagerly watching for the performance of Teradyne in its upcoming earnings disclosure. On that day, Teradyne is projected to report earnings of $0.61 per share, which would represent year-over-year growth of 19.61%. Meanwhile, the latest consensus estimate predicts the revenue to be $683.57 million, indicating a 13.96% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.43 per share and a revenue of $3.06 billion, demonstrating changes of +6.52% and +8.36%, respectively, from the preceding year.
Investors might also notice recent changes 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 company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 12.42% fall in the Zacks Consensus EPS estimate. At present, Teradyne boasts a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Teradyne is currently being traded at a Forward P/E ratio of 26.31. Its industry sports an average Forward P/E of 19.46, so one might conclude that Teradyne is trading at a premium comparatively.
It is also worth noting that TER currently has a PEG ratio of 3.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 149, positioning it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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.
