Trade-Ideas LLC identified Teradyne ( TER) as a strong and under the radar 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 $57.4 million.
  • TER has traded 1360.9600000000000363797880709171295166015625 options contracts today.
  • TER is making at least a new 3-day high.
  • TER has a PE ratio of 4.
  • TER is mentioned 1.74 times per day on StockTwits.
  • TER has not yet been mentioned on StockTwits today.
  • TER is currently in the upper 20% of its 1-year range.
  • TER is in the upper 35% of its 20-day range.
  • TER is in the upper 45% of its 5-day range.
  • TER is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on TER:

Teradyne, Inc. provides automatic test equipment worldwide. The stock currently has a dividend yield of 1.2%. TER has a PE ratio of 4. Currently there are 6 analysts that rate Teradyne a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Teradyne has been 2.4 million shares per day over the past 30 days. Teradyne has a market cap of $4.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.97 and a short float of 3.2% with 2.22 days to cover. Shares are up 1.7% year-to-date as of the close of trading on Monday.

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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, deteriorating net income 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 -31.03%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.0%. 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.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Semiconductors & Semiconductor Equipment industry average. The net income has decreased by 13.9% when compared to the same quarter one year ago, dropping from $82.95 million to $71.45 million.
  • 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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