Teradyne Inc. (TER) Issues Valuation Warning: Bottom 10% Risk
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
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Source: Benzinga
- Valuation Warning: Teradyne's fundamental valuation metrics have deteriorated, with Benzinga Edge's value score dropping to 9.55, indicating the stock ranks in the bottom 10% relative to peers in terms of assets, earnings, sales, and operating performance, suggesting it is overpriced compared to the market.
- Momentum Disconnect: Despite valuation concerns, Teradyne boasts a momentum score of 96.14, placing it in the top percentile for relative strength and volatility, creating a distinct divergence where technical momentum drives the price higher even as fundamental value appeal diminishes.
- ARK Investment: Teradyne is a cornerstone in Cathie Wood's ARK Autonomous Technology & Robotics ETF, holding a 9.7% weight, and is a top-five holding in the ARK Space & Defense Innovation ETF at 7.5%, reflecting strong performance in AI and robotics sectors.
- Stock Performance: As of 2026, Teradyne's stock has risen 11.72%, with gains of 147.48% over the past six months and year; however, the declining value score suggests its premium has reached historically high levels, potentially impacting investor confidence moving forward.
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Analyst Views on TER
Wall Street analysts forecast TER stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TER is 206.12 USD with a low forecast of 161.00 USD and a high forecast of 240.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
13 Buy
4 Hold
1 Sell
Moderate Buy
Current: 250.480
Low
161.00
Averages
206.12
High
240.00
Current: 250.480
Low
161.00
Averages
206.12
High
240.00
About TER
Teradyne, Inc. is a global supplier of automated test equipment and robotics solutions. It designs, develops, manufactures and sells automated test systems and robotics products. Its segment includes Semiconductor Test, Robotics, and Product Test. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services, inclusive of storage and system level test products. The Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms and autonomous mobile robots. The Product Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, and silicon photonics testing. Its offerings also include defense/aerospace test instrumentation and systems, circuit-board test and inspection (production board test) systems, and wireless test systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Teradyne Announces Quarterly Cash Dividend
- Quarterly Dividend Announcement: Teradyne has declared a cash dividend of $0.12 per share, payable on March 13, 2026, to shareholders of record as of February 13, 2026, demonstrating the company's commitment to returning value to its shareholders.
- Business Context: Teradyne designs, develops, and manufactures automated test equipment and advanced robotics systems, with its testing solutions enabling customers to maintain high-quality standards in the semiconductor and electronics sectors, thereby enhancing competitive positioning.
- Robotics Business Growth: The company's advanced robotics segment includes collaborative and mobile robots that support manufacturing and warehouse operations for businesses of all sizes, further driving growth in the automation industry.
- Forward-Looking Statements: The announcement includes forward-looking statements regarding future dividend payments and record dates, which are subject to board approval, reflecting the company's cautious approach to future performance and market conditions.
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