The most recent trading session ended with Teradyne (TER) standing at $109.86, reflecting a +0.96% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 1.59%. At the same time, the Dow added 1.39%, and the tech-heavy Nasdaq gained 1.63%.

Shares of the maker of wireless products, data storage and equipment to test semiconductors have depreciated by 5.45% over the course of the past month, underperforming the Computer and Technology sector's loss of 3.43% and the S&P 500's loss of 2.42%.

Market participants will be closely following the financial results of Teradyne in its upcoming release. The company is predicted to post an EPS of $0.61, indicating a 19.61% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $683.57 million, up 13.96% from the year-ago period.

TER's full-year Zacks Consensus Estimates are calling for earnings of $3.88 per share and revenue of $3.21 billion. These results would represent year-over-year changes of +20.5% and +13.77%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Teradyne. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 5.3% lower within the past month. Teradyne is currently a Zacks Rank #3 (Hold).

In the context of valuation, Teradyne is at present trading with a Forward P/E ratio of 28.03. For comparison, its industry has an average Forward P/E of 19.49, which means Teradyne is trading at a premium to the group.

Investors should also note that TER has a PEG ratio of 2.59 right now. 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. The Electronics - Miscellaneous Products industry had an average PEG ratio of 1.42 as trading concluded yesterday.

The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Teradyne, Inc. (TER) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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