Teradyne Outlook - A Bearish Turn Amid Mixed Analyst Opinions

Market Snapshot

Headline Takeaway: Teradyne (TER) is currently in a weak technical state with more bearish signals than bullish ones. The stock has dropped by 5.07% recently, and our internal diagnostic score is a low 2.97.

News Highlights

Recent developments in the semiconductor sector highlight both opportunities and risks for Teradyne:

• McKinsey's Tariff Analysis: A report from McKinsey assesses U.S. tariff policies on semiconductors, which could reshape trade dynamics and impact companies like Teradyne in the long run.
• ETF Outflows: The U.S. Semiconductors ETF (SOXX) faced a $750 million net outflow in May 2025, signaling investor caution and potentially affecting broader market sentiment for the sector.
• Japan-U.S. Cooperation: Japan is exploring new proposals to collaborate with the U.S. on rare earths and semiconductors. This could provide long-term benefits for global supply chains and reduce dependency on China, potentially favoring companies like Teradyne.

Analyst Views & Fundamentals

Recent analyst ratings are mixed, with 3 out of 5 ratings being Neutral and 2 being Strong Buy. This suggests a moderate level of optimism, though not strongly aligned with the recent price decline.

• Average Rating (Simple Mean): 3.80
• Weighted Rating (Performance-Weighted): 4.62
• Rating Consistency: There are differences among analysts—some predict strong growth, others caution—making it hard to form a clear consensus.
• Price Trend: The stock has dropped 5.07% recently, which contrasts with the mostly positive analyst expectations.

Key Fundamental Values:

• Net Profit Attributable to Parent Shareholders / Net Profit: 100.00% (Internal diagnostic score: 1.74)
• EV/EBIT: 91.39 (Internal diagnostic score: 2.00)
• Net Cash Flow from Operating Activities (YoY Growth Rate): 53.89% (Internal diagnostic score: 1.74)
• Cash-UP: 6.31% (Internal diagnostic score: 2.97)
• Interest Coverage Ratio (EBIT / Interest Expense): 10.39% (Internal diagnostic score: 1.74)

While some fundamentals remain strong, the overall trend appears to be weakening. Investors should watch for divergence between fundamentals and technicals before making a move.

Money-Flow Trends

Big-money flows are showing a positive bias, with 51.35% of large and extra-large investor activity being inflows. However, small and medium-sized investors are also showing positive inflow ratios of 50.49% and 52.61%, respectively. This suggests that while there is broad investor participation, large investors are still cautious. The overall fund flow score is a 7.72 (internal diagnostic score), which is relatively strong but doesn't necessarily align with the technical signals.

Key Technical Signals

From a technical standpoint, Teradyne is currently weak. Our internal diagnostic score is 2.97, reflecting a bearish bias.

• WR Overbought: 1.00 (internal diagnostic score). Suggests caution in a near-term overbought condition.
• WR Oversold: 1.74 (internal diagnostic score). Indicates a neutral to bearish shift after being in a deep oversold condition.
• MACD Death Cross: 3.55 (internal diagnostic score). A bearish signal suggesting a potential trend reversal.
• Bearish Engulfing: 4.67 (internal diagnostic score). Strong bearish momentum on the chart pattern.
• Ex-Dividend Date: 4.42 (internal diagnostic score). Slight positive bias around this event.
• Dividend Record Date: 4.42 (internal diagnostic score). Slight positive influence from dividend-related activity.
• Piercing Pattern: 1.00 (internal diagnostic score). A weak bullish signal that quickly reversed.

Recent Indicators by Date:

• 2025-09-13: WR Overbought and Oversold indicators are conflicting, suggesting volatility.
• 2025-09-10: A Piercing Pattern formed but reversed quickly, indicating bearish pressure.
• 2025-09-08: A MACD Death Cross and Bearish Engulfing pattern confirmed the bearish momentum.

The overall trend remains bearish, with 4 bearish indicators against 0 bullish ones. The technical outlook remains weak.

Conclusion

Teradyne is currently in a technical bear market with mixed analyst views and strong money flows. The recent 5.07% price drop contrasts with the positive average and weighted analyst ratings. Investors should be cautious and consider waiting for a clearer signal or improved technical setup before committing new capital. Consider waiting for a pull-back or a breakout in the coming weeks before taking a position.