Teradyne (TER) Rises But Trails Market: What Investors Should Know

Company Performance - Teradyne's stock closed at $134.93, reflecting a +0.56% change from the previous trading day's closing, underperforming the S&P 500 which gained 1.83% [1] - The stock has increased by 4.82% over the past month, contrasting with the Computer and Technology sector's loss of 3.84% and the S&P 500's loss of 3.31% [2] Earnings Expectations - Analysts expect Teradyne to report earnings of$ 0.90 per share, indicating a year-over-year growth of 13.92% [3] - The consensus revenue estimate is projected at $740.68 million, reflecting a 10.45% increase from the same quarter last year [3] Analyst Sentiment - Recent changes to analyst estimates for Teradyne suggest optimism regarding the company's business outlook [4] - The Zacks Rank system, which evaluates estimate changes, currently rates Teradyne as 1 (Strong Buy), indicating a positive sentiment among analysts [6] Valuation Metrics - Teradyne has a Forward P/E ratio of 32.61, which is a premium compared to the industry average of 19.4 [7] - The company has a PEG ratio of 2.23, higher than the industry average PEG ratio of 1.59, indicating a higher expected earnings growth trajectory [7] Industry Context - The Electronics - Miscellaneous Products industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 147, placing it in the bottom 42% of over 250 industries [8] - Research indicates that top-rated industries outperform the bottom half by a factor of 2 to 1 [8]