TERTeradyne demonstrates strong long-term potential in automation and semiconductor testing, with solid profitability. However, current valuation and recent performance indicate a cautious approach is warranted. Thematic tailwinds are present but tempered by short-term technical indicators suggesting a potential for consolidation.
Teradyne is well-positioned to benefit from growth in automation and semiconductor demand, driven by trends in automotive, industrial, and consumer electronics.
Teradyne shows strong revenue and earnings growth, with improving profitability and a healthy balance sheet. The company consistently beats EPS estimates, indicating operational strength.
The stock is trading below its 52-week high, and several short-term indicators suggest it may be heading for a pullback or period of consolidation. However, longer-term moving averages remain supportive.
| Factor | Score |
|---|---|
| Semiconductor Testing Demand | 85 |
| Industrial Automation & Robotics | 70 |
| Emerging Technologies (5G, AI, EVs) | 80 |
| Supply Chain Resilience | 65 |
| Geopolitical Factors | 50 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 75 |
| Growth | 70 |
| Balance Sheet Health | 90 |
| Cash Flow | 85 |
| Earnings Surprise | 95 |
| Factor | Score |
|---|---|
| Trend Analysis | 60 |
| Momentum | 50 |
| Support & Resistance | 50 |
| Short-term Sentiment | 40 |
| Overbought/Oversold Indicators | 55 |
Consistent EPS Surprises
Teradyne has exceeded EPS estimates in the last 5 reported quarters, indicating robust operational performance and effective earnings management.
Forward P/E Suggests Value
The forward P/E ratio of 25.87 suggests that the stock might be undervalued relative to its future earnings potential, especially considering the EPS estimates for upcoming quarters.
High Current P/E Ratio
The trailing P/E ratio of 25.87, while lower than some recent quarterly P/E ratios, is still relatively high, suggesting that future growth expectations are already factored into the current price.
Declining Revenue Trend
Annual revenue has shown a downward trend from $3.7B in 2021 to $2.8B in 2024, indicating potential challenges in top-line growth.
May 2025
22
Ex-Dividend Date
June 2025
13
Next Dividend Date
July 2025
30
Next Earnings Date
H: $0.61
A: $0.54
L: $0.48
H: 675.50M
A: 650.79M
L: 642.90M
Teradyne, Inc. designs, develops, manufactures, and sells automated test systems and robotics products in the United States, Asia Pacific, Europe, the Middle East, and Africa. It operates through Semiconductor Test, Robotics, and Other segments. The Semiconductor Test segment offers products and services for wafer level and device package testing, and system level testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The Robotics segment provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and industrial customers. It also provides semiconductor test systems and instruments, defense/aerospace test instrumentation and systems, storage and system level test systems, wireless test systems and robotics products, and circuit-board test and inspection systems; production board test; and wireless test solutions for silicon validation, wireless module manufacturing, and wireless end device manufacturing under the LitePoint brand. Teradyne, Inc. was incorporated in 1960 and is headquartered in North Reading, Massachusetts.
96.69 USD
The 39 analysts offering 1 year price forecasts for TER have a max estimate of 133.00 and a min estimate of 74.00.