Up 183% Over the Past Year, Does Teradyne Stock Have More Room to Run?

• Teradyne (TER) has surged 183% over the past year.
• TER stock recently hit a new all-time high of $344.92.
• The stock boasts an 80% “Buy” Barchart opinion and robust technical momentum.
• Despite bullish sentiment from many analysts and investors, some advisory services warn TER may be overvalued relative to fundamentals.

Today’s Featured Stock

Valued at $51 billion, Teradyne (TER) is a leading provider of automated test equipment. 

The company is primarily focused on the semiconductor test market, which generates the bulk of its revenues. It also provides specialized system testing equipment for specific end markets. 

What I’m Watching 

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. TER checks those boxes. Since the Trend Seeker issued a new “Buy” on Nov. 26, shares are up 67.54%.

Barchart Technical Indicators for Teradyne

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Teradyne scored an all-time high of $344.92 on Feb. 26.

• Teradyne has a Weighted Alpha of +220.18.
• TER has an 80% “Buy” opinion from Barchart.
• The stock has gained 182.66% over the past 52 weeks.
• Teradyne has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $307.87 with a 50-day moving average of $256.38.
• TER has made 8 new highs and is up 5.66% over the past month.
• Relative Strength Index (RSI) is at 54.94.
• There’s a technical support level around $315.29.

Don’t Forget the Fundamentals

• $51 billion market capitalization.
• 80.61x trailing price-earnings ratio.
• 0.17% dividend yield.
• Revenue is expected to grow 30.95% this year and another 18.54% next year.
• Earnings are estimated to increase 57.53% this year and an additional 28.25% next year.

Analyst and Investor Sentiment on Teradyne

• The Wall Street analysts followed by Barchart gave the stock 11 “Strong Buy,” 1 “Moderate Buy,” and 5 “Hold” opinions with price targets between $220 and $335.
• Value Line rates the stock “Highest” with price targets between $109 and $433.
• CFRA’s MarketScope rates the stock a “Sell” with a price target of $237.
• Morningstar thinks the stock is 28% overvalued with a fair value of $250, way below Friday’s close.
• 1,139 investors following the stock on Motley Fool think it will beat the market while 98 think it won’t.
• 34,360 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
• Short interest is 3.01% of the float with 1 day to cover the float.

The Bottom Line on Teradyne

While Value Line, analysts, and individual investors are still bullish, some financial advisory sites think Teradyne’s valuation is stretched.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.