/Teradyne%2C%20Inc_%20logo%20o%20building-by%20Michael%20Vi%20via%20Shutterstock.jpg)
North Reading, Massachusetts-based Teradyne, Inc. (TER) designs, develops, manufactures, and sells automated test systems and robotics products. Valued at $17.3 billion by market cap, the company's test equipment products and services include, semiconductor test systems, military, aerospace test instrumentation, circuit-board test, inspection systems, automotive diagnostic, and test systems.
Shares of this leading supplier of automated test solutions have underperformed the broader market considerably over the past year. TER has gained 17.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 32.3%. In 2024, TER stock is down 1.8%, compared to the SPX’s 24.7% rise on a YTD basis.
Narrowing the focus, TER’s underperformance is apparent compared to the iShares Semiconductor ETF (SOXX). The exchange-traded fund has gained about 28.9% over the past year. Moreover, the ETF’s 13.7% gains on a YTD basis outshine the stock’s single-digit losses over the same time frame.
On Oct. 23, TER reported its Q3 results and its shares closed down more than 11% in the following trading session. Its adjusted EPS of $0.90 surpassed Wall Street expectations of $0.78. The company’s revenue was $737.3 million, topping Wall Street forecasts of $714.1 million. For Q4, TER expects its adjusted EPS to be between $0.80 and $0.97, and expects its revenue to be between $710 million and $760 million.
For the current fiscal year, ending in December, analysts expect TER’s EPS to grow 7.5% to $3.15 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last three quarters.
Among the 16 analysts covering TER stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, five “Holds,” and one “Moderate Sell.”
This configuration is more bullish than three months ago, with nine analysts suggesting a “Strong Buy.”
On Oct. 25, Craig-Hallum maintained a “Buy” rating on TER with a $111 price target, implying a potential upside of 4.2% from current levels.
The mean price target of $136.19 represents a 27.9% premium to TER’s current price levels. The Street-high price target of $180 suggests an ambitious upside potential of 69%.
- Can the Recent Strength in Disney Stock Continue After Earnings?
- Is Applied Materials Stock a Buy After Its Q4 Earnings Beat?
- Wall Street Expects These 2 Under-the-Radar Growth Stocks to Outperform
- EV Stocks: Trump Killing the EV Tax Credit Might Worsen the Price War
