Teradyne, Inc. (TER): one to watch?

Interesting AI-test-equipment leader with real earnings growth, but it's still pricey after a huge run-up, so the drop is a valuation reset, not a bargain.

👀 WATCH Fundamentals86/100

Fell 21% in 11 trading day(s) — now $349.83

Why TER dropped

The drop is driven by a Wall Street valuation downgrade (Baird cut to Neutral citing "lack of near-term catalysts and valuation concerns") plus a broader profit-taking wave across semiconductor test-equipment stocks after the group's huge AI-driven year-to-date gains, and a sector-wide memory-glut panic — not any company-specific bad news; Teradyne's own Q2 results beat estimates and guidance was actually raised.

Fwd P/E 30.0Op margin 33.2%Rev growth 103.9%Debt/equity 2.9%Analyst upside 27.6%

How this scored 86/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 25.8%

✅ Generates cash Free cash flow $437M

✅ Not drowning in debt Debt/equity 2.9% (limit 200%)

✅ Can pay its bills Current ratio 2.1 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 25/25

Operating margin 33.2% 9/9

Net profit margin 25.8% 8/8

Return on equity 36.5% 8/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 103.9% 9/9

Earnings growth 385.8% 8/8

Expected profit change 60.1% 8/8

Value Is it cheap right now? 13/25

Forward P/E 30.0 3/10

PEG ratio 0.9 7/8

Analyst target upside 27.6% 3/7

Balance sheet Will it survive? 23/25

Debt / equity 2.9% 10/10

Current ratio 2.1 6/8

Free cash flow $437M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-01. Research only — not financial advice.