
NASDAQ:TER
This summary was created by AI, based on 3 opinions in the last 12 months.
Teradyne Inc (TER-Q) has been a longstanding investment for one reviewer, who has held the stock for 12 years and is concerned about its current price, trading at a high PE ratio of 39x with a free cash flow yield of just 2.3%. Despite its strong performance, the expert perceives it as too expensive and plans to trim their position in the future to avoid capital gains tax. Another expert highlighted the robotics sector, which constitutes a small portion of Teradyne's revenues, as a promising area, while suggesting that the stock is overpriced at current levels and recommending a buy target of between $135-140 in the coming months. The company's stock saw a significant increase of 53% in Q3 and is well-regarded for its operations in semiconductor testing equipment, making it one of the top performers in the S&P during that quarter. Overall, while the company is performing well in the market, experts express caution regarding its valuation and future buying opportunities.
Last October, he said one of the themes to watch for in 2025 was robotics. Its robotics accounts for only ~11% of revenues. Pricey. He's been writing some calls. 12-month price target of $150. Don't buy here, but over the next 6 months you can look to pick it up between $135-140.
TER does develop 'advanced robotic systems' so we would expect it to at least be involved in the sector. It spent $435M on research and development projects last year. The stock has had a good start to the year, up 10%. P/E is 43X. It has about $600M net cash and earnings growth is projected at 30% in 2025. The last quarter was very good and estimates have ticked higher in the last four weeks. We think it looks good for a higher growth thematic stock.
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Makes equipment for the chip industry. Recall the dartboard chart described at the top of today's show of the automation/robotics ecosystem. In the hardware space, just outside the manufacturers. Testing equipment for semiconductors, wireless, storage devices. Ensures quality and reliability of high-tech products. About 20% runway to $150. Yield is 0.4%.
What's also very cool is that, yes, it's in automation. But it's also gotten into robotics to the tune of about 25% CAGR growth rate consistently for the last 2 years, compared to 20% for peers. Definitely a leader, great company.
Teradyne Inc is a American stock, trading under the symbol TER (previously TER-Q on Stockchase) on the NASDAQ (TER). It is usually referred to as NASDAQ:TER or TER
In the last year, 3 stock analysts published opinions about TER (previously TER-Q on Stockchase). 2 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is WEAK BUY. Read the latest stock experts' ratings for Teradyne Inc.
Teradyne Inc was recommended as a Top Pick by Ben Rogoff on 2006-04-24. Read the latest stock experts ratings for Teradyne Inc.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered Teradyne Inc in the last year. It is a trending stock that is worth watching.
On 2026-05-29, Teradyne Inc (TER) stock closed at a price of $374.31.
Has owned this for 12 years. Is caught up in the AI trade. Trades at 39x PE and 2.3% free cash flow yield. Is too expensive. Wants to trim it, but doesn't want to take the capital gain hit. Will trim in the new year.