Teradyne Story

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TER -- USA Stock  

USD 126.80  7.20  5.37%

Teradyne is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 27th of January 2021. The stock is currently outperforming technology sectors. Because some millenniums are getting more into technology space, we are going to sum up the feasibility of inclusion Teradyne into your portfolio. Should we be more optimistic in anticipation of a recovery?
Published over a month ago
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Do analysts have more confidence in Teradyne (NASDAQ:TER) in January?
The company has 468.63 M in debt with debt to equity (D/E) ratio of 0.24, which may show that Teradyne is not taking advantage of profits from borrowing.
What is the right price you would pay to acquire a share of Teradyne? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.
Please read more on our stock advisor page.

What is happening with Teradyne this year

Annual and quarterly reports issued by Teradyne are formal financial statements that are published yearly and quarterly and sent to Teradyne stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Teradyne often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Teradyne utilizes its cash?

To perform a cash flow analysis of Teradyne, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Teradyne is receiving and how much cash it distributes out in a given period. The Teradyne cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Teradyne Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Teradyne reported last year Net Cash Flow from Operations of 868.93 Million

Is Teradyne valued sensibly by the market?

Earning per share calculations of Teradyne is based on official Zacks consensus of 7 analysts regarding Teradyne's future annual earnings. Given the historical accuracy of 89.82%, the future earnings per share of the company is estimated to be 4.4889 with the lowest and highest values of 4.45 and 4.54, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Teradyne a risky opportunity?

Let's check the volatility. Teradyne is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Teradyne (NASDAQ:TER) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. buying a share of a Teradyne stock makes you a part-owner of that company.

Teradyne Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Teradyne. The Teradyne consensus assessment is calculated by taking the average estimates from all of the analysts covering Teradyne

Strong Buy
Strong Sell
Strong Buy541.67
Strong Sell18.33

Another small fall for Teradyne

The expected short fall is down to -2.17 as of today. As of the 26th of January, Teradyne has the Semi Deviation of 1.14, coefficient of variation of 287.05, and Risk Adjusted Performance of 0.3396. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Teradyne, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to break down nineteen technical drivers for Teradyne, which can be compared to its competition. Please validate Teradyne information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if Teradyne is priced more or less accurately, providing market reflects its prevalent price of 138.54 per share. Given that Teradyne has jensen alpha of 0.6779, we advise you to double-check Teradyne's current market performance to make sure the company can sustain itself at a future point.

Our Takeaway on Teradyne Investment

While some other firms in the semiconductor equipment & materials industry are either recovering or due for a correction, Teradyne may not be performing as strong as the other in terms of long-term growth potentials. Taking everything into account, as of the 26th of January 2021, our research shows that Teradyne is a rather very steady investment opportunity with a very small probability of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. However, our ongoing 30 days buy-hold-sell recommendation on the enterprise is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Teradyne. Please refer to our Terms of Use for any information regarding our disclosure principles.

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