Teradyne (TER) - 36.70% Below 52-Week High: Buy or Wait?

Stock Details

Teradyne, Inc. (TER), a prominent company in the technology sector within the semiconductor equipment & materials industry, is based in United States and primarily trades on the NMS.Currently, the stock is trading at $308.87. Over the past 52 weeks, it has ranged between $135.83 and $487.91. This places the current price at 63.3% of its 52-week high and 127.4% above its 52-week low. Recent trading volume was recorded at 2,645,667. The 14-day Relative Strength Index (RSI) stands at 58.45, suggesting neutral conditions. The stock is currently trading below its 50-day moving average of $372.50 by 17.08%. Similarly, it is below its 200-day moving average of $332.68 by 7.16%. The MACD histogram is 5.01, indicating bullish momentum (MACD Line: 8.74, Signal Line: 3.73). The International Securities Identification Number (ISIN) for this stock is US8807701029.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

44.64

Above market average

Forward P/E

27.89

Earnings expected to grow

PEG Ratio

0.59

Potentially undervalued

Price to Book

14.79

EV/EBITDA

33.62

EPS (TTM)

$7.28

Price to Sales

11.38

Beta

1.75

More volatile than market

Q:How is TER valued relative to its earnings and growth?

Teradyne, Inc. trades at a P/E ratio of 44.64, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 27.89 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.59 suggests the stock may be undervalued relative to its growth rate.

Q:What is TER's risk profile compared to the market?

With a beta of 1.75, Teradyne, Inc. is significantly more volatile than the market. For every 10% market move, this stock tends to move 17% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 14.79 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

25.77%

Operating Margin

33.16%

EBITDA

$1.50B

Return on Equity

36.46%

Return on Assets

19.75%

Revenue Growth (YoY)

103.90%

Earnings Growth (YoY)

385.80%

Q:How profitable and efficient is TER's business model?

Teradyne, Inc. achieves a profit margin of 25.77%, meaning it retains $25.77 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 33.16% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 36.46% and ROA at 19.75%, the company generates strong returns on invested capital.

Q:What are TER's recent growth trends?

Teradyne, Inc.'s revenue grew by 103.90% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 385.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against Semiconductor Equipment & Materials industry averages for proper context.

Dividend Information

Dividend Per Share

$0.52

Dividend Yield

0.16%

Ex-Dividend Date

Sep 4, 2026

Dividend Date

Sep 25, 2026

Q:What dividend income can investors expect from TER?

Teradyne, Inc. offers a dividend yield of 0.16%, paying $0.52 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 4, 2026.

Q:How reliable is TER's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Teradyne, Inc. pays $0.52 per share in dividends against earnings of $7.28 per share, resulting in a payout ratio of 7.14%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Sep 25, 2026.

Company Size & Market

Market Cap

$50.8B

Revenue (TTM)

$4.46B

Revenue/Share (TTM)

$28.44

Shares Outstanding

156.34M

Book Value/Share

$21.97

Asset Type

EQUITY

Q:What is TER's market capitalization and position?

Teradyne, Inc. has a market capitalization of $50.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 156.34M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Semiconductor Equipment & Materials industry, it competes with other firms in this sector.

Q:How does TER's price compare to its book value?

Teradyne, Inc.'s book value per share is $21.97, while the current stock price is $308.87, resulting in a price-to-book (P/B) ratio of 14.06. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$446.47

44.55% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for TER?

17 analysts cover TER with 71% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $446.47 implies 44.5% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on TER?

Current analyst recommendations:012 Buy, 4 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 18, 2026, 02:48 AM

Technical Indicators

RSI (14-day)

58.45

Neutral

50-Day Moving Average

$372.50

-17.08% below MA-50

200-Day Moving Average

$332.68

-7.16% below MA-200

MACD Line

8.74

MACD Signal

3.73

MACD Histogram

5.01

Bullish

Q:What does TER's RSI value tell investors?

The RSI (Relative Strength Index) for TER is currently 58.45, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being below the 50-day moving average, this shows mixed signals requiring careful analysis.

Q:How should traders interpret TER's MACD and moving average crossovers?

MACD analysis shows the MACD line at 8.74 above the signal line at 3.73, with histogram at 5.01. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($372.50) is above the 200-day MA ($332.68), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently below both MAs, confirming weakness.

Indicators last updated: Oct 1, 2026, 08:07 AM

Teradyne, Inc. (TER) Stock