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 $38.3 million.
  • TER has traded 1490.299999999999954525264911353588104248046875 options contracts today.
  • TER is making at least a new 3-day high.
  • TER has a PE ratio of 4.
  • TER is mentioned 0.42 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 2.3 million shares per day over the past 30 days. Teradyne has a market cap of $4.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.96 and a short float of 2.9% with 3.47 days to cover. Shares are up 2.4% year-to-date as of the close of trading on Tuesday.

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TheStreet Quant Ratings rates Teradyne as a buy. 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, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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. The firm also exceeded the industry average cash flow growth rate of -5.51%.
  • The gross profit margin for TERADYNE INC is rather high; currently it is at 59.21%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.33% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.7%. 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 suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over 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 ($1.21 versus $0.37).

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