TER Should I Buy
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Teradyne Inc. (TER) is a strong buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's robust financial performance, positive growth outlook driven by AI-related opportunities, and strong analyst sentiment outweigh the minor technical and hedge fund selling concerns. The current price, while near an all-time high, reflects strong fundamentals and growth potential.
The technical indicators show a bullish trend. The MACD is positive and contracting, moving averages are in a bullish alignment (SMA_5 > SMA_20 > SMA_200), and the RSI is neutral at 69.842. The stock is trading near resistance levels (R1: 318.376) but remains above key support levels (S1: 250.234).
Strong Q4 2025 financial performance with revenue up 43.89% YoY, net income up 75.87% YoY, and EPS up 81.11% YoY.
AI-driven growth opportunities projected by the CEO.
11 recent price target upgrades, with several analysts raising targets to $325 or higher.
News of a 24.5% surge to an all-time high following strong earnings and guidance.
Hedge funds are selling, with a significant 6736.93% increase in selling activity last quarter.
Gross margin dropped by 3.25% YoY, which may indicate cost pressures.
One analyst downgraded the stock, citing valuation concerns and potential earnings peak.
In Q4 2025, Teradyne reported exceptional growth: revenue increased by 43.89% YoY to $1.08 billion, net income rose by 75.87% YoY to $257.22 million, and EPS grew by 81.11% YoY to $1.63. However, gross margin dropped slightly to 56.88%, down 3.25% YoY.
Analyst sentiment is overwhelmingly positive, with multiple firms raising price targets significantly following strong Q4 results. Notable upgrades include Susquehanna ($335), Stifel ($325), and TD Cowen ($325). One downgrade from Northland cited valuation concerns but still raised the price target to $270.
