Summary
TER has broken above a key resistance level at $199.30, currently trading at $227.06 (13.9% beyond the level). This technical breakout signals buying pressure and suggests potential upward momentum. The RSI at 74.8 indicates overbought conditions, suggesting caution despite the breakout. This is a 100-day trendline break, which is more significant than shorter-term breaks as it indicates a potential shift in the longer-term trend direction.
Technical Chart
Breakout Analysis
When a stock breaks through an established resistance level with conviction, it often signals that the previous price barrier has been overcome. The 13.9% move beyond the resistance level indicates strong buying pressure.
Key Levels to Watch
| Breakout Level | $199.30 |
| Current Price | $227.06 |
| Break Distance | 13.9% |
Investment Advisor Score
57.5/100
HOLDOur AI-powered investment scoring system analyzes multiple factors including fundamentals, technicals, and market sentiment to generate this score.
Company Overview
Teradyne, Inc. Common Stock
Teradyne provides testing equipment, including automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems and wireless testing for devices. The firm entered the industrial automation market in 2015, into which it sells collaborative and autonomous robots for factory applications. Teradyne serves numerous end markets and geographies directly and indirectly with its products, but its most significant exposure is to semiconductor testing.
Why This Matters
This technical breakout in TER suggests that institutional investors are repositioning based on their analysis of the company's prospects. When stocks break through established technical levels, it often indicates a shift in market sentiment that can drive sustained price movement.
The company's healthy 15.5% profit margin suggests this breakout has fundamental backing. Profitable companies with solid margins tend to see more sustainable price appreciation compared to those relying purely on revenue growth narratives.
Competitive Position & Moat
Teradyne, Inc. possesses a strong competitive moat characterized by its robust portfolio of automated test equipment (ATE) for semiconductors, which is critical in an increasingly complex technology landscape. The company's extensive intellectual property, coupled with significant investments in research and development, enhances its product offerings and fosters innovation in testing solutions. Additionally, Teradyne's scale allows for economies of production and distribution, reinforcing its position as a market leader, particularly in semiconductor testing where switching costs for customers can be high due to the integration of ATE into existing manufacturing processes. In terms of market position, Teradyne differentiates itself through its comprehensive suite of testing solutions that cater to diverse end markets, including fabless and foundry chipmakers. The company's strategic entry into industrial automation, with products like collaborative and autonomous robots, further diversifies its revenue streams and mitigates reliance on the cyclical semiconductor market. However, potential risks include increasing competition from emerging players in the automation and testing sectors, as well as technological advancements that may disrupt existing testing methodologies. Additionally, geopolitical tensions and supply chain disruptions could impact Teradyne's ability to serve its global customer base effectively.Financial Health (SEC Data)
Based on the latest SEC filings, here's an analysis of TER's financial position:
Profitability Analysis
| Revenue | $2.86B |
| Net Income | $443.23M |
| Profit Margin | 15.5% |
With a 15.5% profit margin, TER shows healthy profitability, suggesting solid business fundamentals.
Options Market Insight
| Options Confidence | 68.6/100 |
| Signal | Buy Calls |
| Recommendation | SPECULATIVE |
| Unusual Activity Score | 0.9 |
Speculative setup. Some confirming signals but also red flags. Size accordingly.
Options Flow Factors:
- Catalyst: Earnings in 30 days
- Early entry - good timing
- Strong signal alignment (6/6)
Risk Factors:
- Low institutional flow - mostly retail
Technical Indicators
| RSI (14) | 74.8 |
| MACD Signal | Bullish |
| 50-Day SMA | $184.61 |
| 200-Day SMA | $177.06 |
| Price vs MAs | Above both (Bullish) |
Next Levels to Watch
| 50-Day SMA | $184.61 |
| 200-Day SMA | $177.06 |
Trading Considerations
- Confirmation: Watch for sustained price action above $199.30
- Volume: Look for volume confirmation on continued moves
- Role Reversal: Broken level at $199.30 may now act as support
- Risk Management: Always use stop-loss orders
Conclusion
TER's break above the $199.30 resistance level represents a significant technical development. Traders should monitor price action and volume for confirmation of this bullish signal.
Related Analysis for TER
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Past performance does not guarantee future results. Always do your own research and consider your risk tolerance before making trading decisions.