Teradyne Inc (TER) Stock Analysis
Verdict: HOLD
AI chip complexity fuels 50%+ revenue growth, but 51.9x P/E valuation and 19 insider sells leave limited risk-adjusted upside.
Investment score: 63/100
Analysis as of
Is Teradyne Inc stock worth reviewing? AI model thesis
The AI model assigns a HOLD verdict on Teradyne (TER). While AI compute and memory test complexity generated a 152.8% earnings surge and 4 consecutive quarterly beats, a rich TTM P/E of 51.9x and zero insider buys against 19 insider sells indicate valuation risk at current price levels.
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 60/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 25/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Teradyne Inc opportunities and risks
What speaks for TER
- Surging AI compute and HBM memory test complexity
What speaks against TER
- Cyclical AI CapEx slowdown or customer concentration shock
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| TER | 51.9x | 13.3x | 40.8x | 59.3% | 25.8% | 1.3% |
| LRCX | 52.1x | 16.2x | 43.2x | 50.5% | 31.3% | 1.3% |
| AMAT | 39.7x | 11.9x | 32.3x | 49.4% | 30.1% | 1.5% |
| KLAC | 49.8x | 17.7x | 42.4x | 61.3% | 35.6% | 1.6% |
| Q | 43.4x | 4.9x | 19.6x | 43.3% | 11.2% | 3.2% |
| ENTG | 71.6x | 6.6x | 29.2x | 45.5% | 9.2% | 2.6% |
| Peer median | 49.8x | 11.9x | 32.3x | 49.4% | 30.1% | 1.6% |
Frequently asked questions about Teradyne Inc (TER)
Is TER stock a good investment?
The cached TradeMates AI model rates Teradyne Inc as HOLD with an investment score of 63/100. The AI model assigns a HOLD verdict on Teradyne (TER). While AI compute and memory test complexity generated a 152.8% earnings surge and 4 consecutive quarterly beats, a rich TTM P/E of 51.9x and zero insider buys against 19 insider sells indicate valuation risk at current price levels. This is algorithmic model output, not personal investment advice.
Is TER stock a buy?
The TradeMates model verdict for TER is HOLD with an investment score of 63/100. Treat this as a model signal to review, not a personal buy recommendation.