Stock Analysis | Teradyne Outlook - Mixed Signals Across Technicals, Strong Analyst Confidence, and Positive Cash Flows

1. Market Snapshot

Takeaway: Teradyne (TER) is showing mixed signals with a recent 4.03% price rise but faces a weak technical outlook. Analysts remain optimistic, but internal diagnostic scores suggest caution from a chart pattern perspective.

2. News Highlights

• May 30: Japan to Offer U.S. Proposals for Cooperation on Rare Earths, Semiconductors – Japan’s potential partnership with the U.S. could reshape semiconductor supply chains and reduce reliance on China. This could indirectly benefit Teradyne as global infrastructure spending on AI and semiconductors grows.
• May 29: Intel, AMD Executives Launch AI Chip Startups in India – A surge in AI-focused semiconductor startups highlights growing demand. This could increase competition but may also expand the overall market for companies like Teradyne.
• May 30: Lansforsakringar Fondforvaltning AB Makes New $11.77M Investment in NXP Semiconductors – Institutional investment in the semiconductor space signals confidence in the sector’s long-term potential, which could indirectly support Teradyne’s market environment.

3. Analyst Views & Fundamentals

Analysts are generally bullish on Teradyne. The simple average rating is 3.80, while the performance-weighted rating is 4.62, indicating strong alignment between analyst expectations and past performance. However, the ratings are not consistent — there are 3 “Neutral” and 2 “Strong Buy” ratings in the last 20 days, showing some dispersion among professionals.

The current price trend (4.03% rise) matches the weighted expectations of analysts, who appear to be optimistic about the company's medium-term outlook. The internal diagnostic fundamental score is 5.85 (of 10), reflecting solid cash flow and operational efficiency, but some pressure from declining margins and profit growth.

• Net profit attributable to parent company shareholders / Net profit is at 100.00% (score: 3.00).
• Gross Profit Margin (GPM) is at 57.23% (score: 2.00).
• Net cash flow from operating activities (YoY growth rate) is at 53.90% (score: 3.00).
• Total profit (YoY growth rate) is at -30.18% (score: 1.00).
• Cash-UP (Cash flow to market value ratio) is at 6.32% (score: 2.00).

4. Money-Flow Trends

Big money is moving cautiously. The overall fund-flow score is 7.39 (good). Large and extra-large investors have a negative trend, while small and medium investors are positive. The block trend is negative, but the overall inflow ratio is 40.08%, suggesting modest net inflows despite some institutional caution.

• Block inflow ratio: 38.06% (negative trend).
• Small inflow ratio: 52.30% (positive trend).
• Medium inflow ratio: 51.97% (positive trend).
• Extra-large inflow ratio: 36.64% (negative trend).

5. Key Technical Signals

Teradyne’s technical outlook is weak, with a technical score of 1.85 (of 10). The chart has shown more bearish than bullish signals in the last five days, and the overall trend is bearish. Here’s a breakdown of key indicators:

• WR Overbought (Weak Relative): Internal diagnostic score is 1.00 — indicates a bearish signal, with a historical win rate of only 34.78% and average return of -1.17% after this signal.
• Long Lower Shadow (Bearish Pattern): Internal diagnostic score is 1.07 — another bearish signal, with a historical win rate of 28.57% and average return of 0.61%.
• MACD Golden Cross: Internal diagnostic score is 1.00 — usually bullish, but here it's rated bearish, with a very poor win rate of 18.18% and average return of -3.57%.
• MACD Death Cross: Internal diagnostic score is 4.32 — rated neutral, with a 50.0% win rate and average return of 1.31%.

Recent patterns include:

• Aug 25: WR Overbought and MACD Golden Cross (both bearish signals).
• Aug 20: Long Lower Shadow and MACD Death Cross (mixed signals).

Key Insights: Bearish signals dominate (3 to 0), and the market is currently in a weak technical state. Investors are advised to avoid Teradyne at this time based on chart behavior.

6. Conclusion

While Teradyne has a strong analyst rating and positive cash flow fundamentals, the technical picture is weak with internal diagnostic scores near the bottom of the 0-10 range. With a recent 4.03% price rise, the company is showing short-term momentum but faces conflicting signals. Investors should consider waiting for a pull-back or clearer technical confirmation before entering a position.