Stock Analysis | Teradyne Outlook - Mixed Signals Amid Strong Earnings and Rising Price

Market Snapshot

Takeaway: Teradyne (TER) is rising 9.23% despite weak technical indicators and mixed analyst ratings.

News Highlights

• McKinsey Report on US Tariffs and Semiconductors: A recent McKinsey report highlights the impact of US tariffs on semiconductor supply chains. The semiconductor sector, including Teradyne, could face increased pressures from shifting trade policies, especially as international appeals continue to validate current tariff rules.
• Japan's Proposal for Rare Earths and Semiconductor Cooperation: Japan is reportedly preparing proposals for enhanced cooperation with the US in rare earths and semiconductor manufacturing. If implemented, this could reduce dependency on China and open new opportunities for global players like Teradyne.
• Indian Startups in AI Semiconductor Space: A growing trend of AI chip startups in India, backed by former Intel and AMD executives, signals an expanding market. These new entrants may add pressure to established players in the long term.

Analyst Views & Fundamentals

Analysts are split on Teradyne. The simple average rating is 3.80, while the performance-weighted rating is 4.62. This suggests that recent predictions are more optimistic than the average. The current price trend is positive (9.23%), and these ratings align with market expectations. However, there are clear differences in analyst sentiment, with 3 out of 5 recent ratings labeled "Neutral" and 2 as "Strong Buy."

Key fundamental factors and internal diagnostic scores:

• Net profit attributable to parent company shareholders / Net profit: 100.0% — Internal diagnostic score: 1 (poor)
• Interest coverage ratio (EBIT / Interest expense): -89.64% — Internal diagnostic score: 2 (weak)
• Net profit attributable to parent company shareholders (YoY growth rate): -29.23% — Internal diagnostic score: 3 (neutral)
• Net cash flow from operating activities per share (YoY growth rate): -97.65% — Internal diagnostic score: 1 (poor)
• Cash-MV: -0.71% — Internal diagnostic score: 3 (neutral)

Money-Flow Trends

Big-money trends are mixed. The overall fund flow score is 7.56 (good), with large and extra-large investors showing some signs of outflow (negative trends for both). Meanwhile, small investors are showing a positive trend, with 52.95% of small investor flows coming in. Retail activity remains strong, but institutional activity is more cautious, with only 44.74% of block flows showing positive trends.

Key Technical Signals

Technically, the stock is in a weak state. The technical score is 2.72 (poor), with 4 bearish indicators versus just 1 bullish one.

• MACD Golden Cross: Score: 1 (weak), indicating a bearish bias with historical average returns of -3.31%.
• WR Overbought: Score: 1 (weak), with a bearish bias and average returns of -0.95%.
• Bullish Engulfing: Score: 8.12 (strong), showing bullish momentum and a historical win rate of 75%.
• Marubozu White: Score: 2.48 (neutral), indicating mixed signals and average returns of 0.3%.
• Dividend Announcement Date: Score: 1 (weak), with bearish implications and average returns of -0.94%.

Recent chart patterns:

• 2025-08-29: WR Overbought
• 2025-08-28: WR Overbought
• 2025-08-26: WR Overbought and Marubozu White
• 2025-08-25: WR Overbought, Dividend Announcement Date, and MACD Golden Cross
• 2025-09-02: WR Overbought and Bullish Engulfing

Overall, bearish signals are dominating, and the technical outlook remains weak. Investors are advised to avoid or at least proceed with caution in the short term.

Conclusion

Despite a recent price rise of 9.23%, Teradyne appears to be showing mixed technical and fundamental signals. The internal diagnostic score of 2.72 and the dominance of bearish indicators suggest a weak trend. However, the bullish engulfing pattern on 2025-09-02 offers a brief ray of hope. Given the current technical weakness, we recommend considering a wait-and-see approach or using dips for closer evaluation. Investors are advised to monitor upcoming earnings and sector-specific news for more clarity on the stock's potential trajectory.