How does Teradyne’s stock performance compare to other semiconductor stocks?
Teradyne, Inc. has a market capitalization of $14.1 billion. (TER) is a leading US technology company specializing in automated test equipment (ATE) and industrial robotics. Founded in 1960 and headquartered in No. Reading, Massachusetts, the company uses testing and automation solutions to support high-tech sectors such as semiconductors, wireless, storage, industrial, defense aerospace and automotive.
Companies worth more than $10 billion are generally labelled as “large” stocks, and Teradyne meets this standard perfectly. The company is the dominant force in semiconductor testing and is the rising competitors of Ai-Enhanced Robotics. Its technology leadership, market share, innovation focus, and financial stability highlight its strong strategic position.
However, TER stock hit a 52-week high of $163.21 on July 16, 2024, down 47% from its peak. TER stock has declined 4.2% over the past three months, with the initial trust Nasdaq Semiconductor ETF (FTXL) 10.4% delaying returns in the same time frame.
TER reduced by 31.4% on a YTD basis, resulting in a 7.9% decrease in FTXL. Additionally, Teradyne’s shares have soaked nearly 40.3% over the past 52 weeks, compared to 11.6% in FTXL falling in the same time frame.
Stocks have fallen below the 200-day moving average since late January, but above the 50-day moving average since early June.
Teradyne delivered its first quarter results on April 28th, with the stock slipping 2.5% in the next trading session. Revenue rose 14.3% year-on-year to $685.7 million, slightly surpassing the consensus estimate of $683.9 million thanks to a strong increase in semiconductor testing, particularly mobile SOCs. The adjusted EPS surged from 47.1% to $0.75 from the previous year’s quarter, breaking analyst expectations by nearly 23%.
Meanwhile, its top rivals ACM Research, Inc. (ACMR) outperforms Ter. ACMR shares rose 66.9% on a YTD basis and 6.4% over the past 52 weeks.
Despite Ter’s poor performance over the past year, analysts are moderately optimistic about the outlook. Ter has a consensus rating of “moderate purchases” from 15 analysts covering stocks. The average price target of $96.86 means a 12.1% chance of a rise from the typical price level.
On the date of publication, Kritika Sarmah had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published barchart.com