Trade-Ideas LLC identified Teradyne ( TER) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Teradyne as such a stock due to the following factors:

  • TER has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $75.3 million.
  • TER has traded 109,338 shares today.
  • TER is down 3.5% today.
  • TER was up 9.7% yesterday.

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More details on TER:

Teradyne, Inc. provides automatic test equipment worldwide. The stock currently has a dividend yield of 1.3%. TER has a PE ratio of 35. Currently there are 7 analysts that rate Teradyne a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Teradyne has been 2.2 million shares per day over the past 30 days. Teradyne has a market cap of $4.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.91 and a short float of 3.2% with 1.81 days to cover. Shares are down 6.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Teradyne as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • TER has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.69, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $179.15 million or 33.94% when compared to the same quarter last year. In addition, TERADYNE INC has also vastly surpassed the industry average cash flow growth rate of -85.39%.
  • Despite the weak revenue results, TER has outperformed against the industry average of 13.1%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • TERADYNE INC's earnings per share declined by 10.5% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TERADYNE INC reported lower earnings of $0.37 versus $0.69 in the prior year. This year, the market expects an improvement in earnings ($1.20 versus $0.37).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, TERADYNE INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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