TER Stock Analysis — Teradyne
Sector: Semiconductors
AI Verdict
You're paying up for a semiconductor test equipment specialist with real earnings momentum, but if chip demand cools, the premium could evaporate fast.
Competitive Moat
Teradyne dominates automated test equipment for semiconductors and electronics, with deep integration into chipmakers' R&D and manufacturing cycles. Its technical expertise and entrenched customer relationships create high switching costs, making it hard for rivals to displace.
Summary
Teradyne's automated test systems are riding a surge in semiconductor demand, driving a 175.89% one-year return.
Where It Stands
Teradyne is up 175.89% over the past year, trades at 36.7x next year's earnings (above the sector median of 25x), and its RSI of 45.0 signals cooling momentum after a huge run.
Key Metrics
- RSI: 45 — Neutral
- Trailing P/E: 52.7x
- Earnings yield (trailing): 1.90% — What is earnings yield?
- Forward P/E: 36.7x
- PEG Ratio: 1.09
- Earnings Growth: +0.4%
- Revenue Growth: +0.6%
- Market Cap: $59.7B
- Dividend Yield: 0.00%
- 1-Year Return: 175.89%
- 5-Year Return: 229%
- 52-Week High: $487.91
- 52-Week Low: $131.75
Learn About More Stock Metrics
- Beta: Learn more
- Return on Equity (ROE): Learn more
- EV/EBITDA: Learn more
Analyst Consensus
16 Buy · 6 Hold · 0 Sell (22 analysts)
Bull Case
With forward EPS growth expected at 43.5% and a forward P/E of 36.7x, you're paying a fair premium for rapid earnings acceleration if the 57.9% revenue growth holds up.
Bear Case
If Teradyne's P/E falls from 36.7x to the sector median of 25x, the stock could lose roughly 32% even if earnings meet expectations.
Catalyst to Watch
Watch for major chip cycle announcements or order book updates — a slowdown could quickly deflate the premium multiple.