Stock Analysis | Teradyne Outlook - Mixed Signals Amid Sector Volatility

Market Snapshot

Stock to Watch Closely: Teradyne (TER.O) is showing a mixed technical and fundamental outlook with an internal diagnostic score of 4.17, signaling caution in the face of a volatile semiconductor sector. Recent price action shows a 6.12% rise, but analyst expectations remain neutral to strong buy, while technical indicators suggest a weak trend.

News Highlights

• McKinsey Report on Tariffs: A new analysis from McKinsey highlights the uncertain regulatory environment for semiconductors, as U.S. tariffs remain in place. This could impact Teradyne’s global supply chains and margins, especially given the company’s heavy exposure to semiconductor equipment.
• Japan-U.S. Cooperation Plans: Japan is reportedly preparing proposals for enhanced collaboration with the U.S. on rare earths and semiconductors, potentially reducing reliance on China. This could benefit Teradyne if it aligns with broader industry partnerships.
• Industry R&D Momentum: A recent MoU between IIT Kharagpur and Singapore’s IME aims to boost semiconductor research in AI, quantum computing, and photonic systems. This reinforces global innovation in the sector, potentially benefiting long-term demand for Teradyne’s products.

Analyst Views & Fundamentals

Analyst consensus on Teradyne is 3.80 (simple average) and 4.10 (historical performance-weighted), showing a generally consistent but cautious outlook. This aligns with the recent price rise of 6.12%, as most institutions remain neutral or bearish. Key fundamental factor values and their internal diagnostic scores are as follows:

• Net profit attributable to parent company shareholders / Net profit: 100.00% — strong performance with an internal diagnostic score of 1.00.
• Net cash flow from operating activities per share (YoY growth rate): 44.87% — very strong with an internal diagnostic score of 0.07.
• Gross profit margin (GPM): 57.23% — robust, but with a score of 0.14, indicating some caution.
• Accounts receivable turnover ratio: 2.96 — weak with a score of 0.04.
• Total profit (YoY growth rate): -30.18% — negative performance with a score of 0.15.
• Cash-UP (cash flow to market value): 6.58% — low with a score of 0.13.
• Interest coverage ratio (EBIT / Interest expense): -81.68% — severely negative with a score of 0.11.
• Cash-MV (cash to market value): -0.71% — a red flag with a score of 0.08.

Money-Flow Trends

Big-money flows show a negative trend, with large and extra-large investors contributing to an inflow ratio of 0.497 and 0.358, respectively. However, retail and small investors are showing a positive tilt, with a small inflow ratio of 0.502. The overall fund-flow score is 6.95, labeled as “good”, indicating that while institutional sentiment is cautious, retail optimism persists. This divergence could point to a tug-of-war between short-term bearish positioning and longer-term bullish conviction.

Key Technical Signals

Teradyne’s technical indicators are mixed, with a weak internal diagnostic score of 4.93. While some bullish signals such as Bullish Engulfing and Shooting Star are flashing strong with internal diagnostic scores of 7.96 and 7.89, respectively, overbought signals like WR Overbought and RSI Overbought are bearish with scores of 1.00 and 1.00.

• Recent chart patterns: A Bullish Engulfing was noted on 2025-08-08 and a Hanging Man on 2025-08-04 — both bullish in nature. Conversely, an RSI Overbought and WR Overbought were flagged on 2025-08-12 and 2025-07-31.
• Overall trend: Weak technology with balanced bullish and bearish signals. Investors should remain cautious and monitor for a breakout or breakdown.

Conclusion

Teradyne’s near-term outlook remains mixed, with conflicting signals across technical indicators, fundamentals, and money flows. While the fund-flow score is positive, and some key technical signals suggest potential for a rebound, overbought conditions and weak financials call for caution. An actionable takeaway would be to wait for a pullback before entering long positions, while keeping an eye on upcoming sector developments and earnings reports for a clearer trend direction.