Teradyne (NASDAQ:TER) Stock, Quote.Headers.trade-ideas

Teradyne

Teradyne, Inc. Common Stock

Teradyne, Inc.

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. Teradyne serves vertically integrated, fabless, and foundry chipmakers with its equipment.

Semiconductor.Shutterstock

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Semiconductor stocks saw a surprising surge, despite Nvidia&#39;s outlook not meeting investors&#39; high expectations.

Semiconductor ETFs Rally Despite Nvidia Dip: 10 Chipmakers Defy The AI Darling&#39;s Drop

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Nvidia stock gets top headlines for the week with second-quarter earnings coming Wednesday. An analyst breaks out the top semiconductor stocks.

Nvidia Stock, Semiconductor Sector Split Between AI Winners And Losers: Analyst Says &#39;Stick With AI First And Foremost&#39;

Teradyne's Tech Triumph

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Cantor Fitzgerald upgraded Teradyne Inc from Neutral to Overweight with $160 price target due to its strong leverage in networking and HBM, and potential for growth in AI market. Analyst expects stock to reach $200+ as demand recovers and investors seek AI exposure.

Teradyne Positioned for AI Growth with Strong Robotics and Auto Test Markets, Analyst Upgrades Stock

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Teradyne Robotics And Siemens Announce Strategic Collaboration To Showcase Future Of Automation At Siemens Experience Center In MxD Innovation Hub, Chicago

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Shares of semiconductor and chip stocks are trading lower. The sector has been volatile recently as investors assess economic data, potential Fed policy and the sector's year-to-date performance.

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Shares of semiconductor stocks are trading higher amid strong recent economic data and in possible sympathy with Nvidia following CEO Jensen Huang's recent comments on demand and after Vice President Harris spoke of investment in American-based companies to win the technology race during the Presidential Debate.

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Semiconductor shares are trading higher amid possible sympathy with NVIDIA. At the ABC 2024 Presidential Debate, Vice President Harris said she wants to invest in American-based technology to win the race on AI and quantum computing.

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Shares of semiconductor, hardware and AI-linked companies are trading lower as the sector continues to pull back. Chip stocks may also be down in sympathy with Broadcom, which fell after reporting earnings.

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Shares of semiconductor stocks are trading lower amid overall market weakness. A drop in the price of NVIDIA may weigh down the sector.

Thursday&#8217;s trading session unfolded with semiconductor stocks surging despite a drop in Nvidia Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) <a href="https://www.benzinga.com/news/24/08/40620740/nvidia-etfs-split-in-pre-market-after-jensen-huang-led-chip-giant-exceeded-q2-expectations">shares.</a>
Nvidia's earnings were seen as a critical juncture for the broader stock market in August, with the potential to either boost or reverse the recent rally. However, events did not play out as many had expected.
<h3 class="wp-block-heading">Nvidia Shares Fall On Unimpressive Guidance</h3>
Nvidia&#8217;s shares failed to rebound after a negative reaction in Wednesday&#8217;s post-market hours.
The Santa Clara, California-based company reported quarterly revenue of $30 billion, beating estimates of $28.86 billion, reflecting a 15% increase from the previous quarter and an impressive 122% year-over-year growth.
Net income reached $16.6 billion, up 12% from the prior quarter and a significant 168% increase compared to the same quarter last year. Earnings per share came in at 68 cents, surpassing the expected 64 cents.
Despite surpassing Wall Street&#8217;s revenue and earnings forecasts, Nvidia&#8217;s outlook failed to meet investors' already lofty expectations for the coming quarters. The company projected this quarter's revenue at $32.5 billion, plus or minus 2%, slightly above the estimated $31.9 billion, but not enough to excite the market.
See Also: <a href="https://www.benzinga.com/news/24/08/40624703/nvidia-to-rally-over-31-here-are-10-top-analyst-forecasts-for-thursday">NVIDIA To Rally Over 31%? Here Are 10 Top Analyst Forecasts For Thursday</a>
<h3 class="wp-block-heading">7 Semiconductor ETFs Rise</h3>
Investors likely viewed Nvidia's quarterly results as a standalone event, opting for caution as the company's guidance did not significantly exceed expectations. 
Yet, they maintained a generally positive sentiment toward the broader market. Competitors of the AI giant experienced a marked rally, deviating from their usual trend of closely following Nvidia&#8217;s performance. 
&#8220;We believe Nvidia's comments on Data Center demand were constructive,&#8221; Toshiya Hari, an analyst at Goldman Sachs, stated. The company&#8217;s outlook for data center demand bodes well for other semiconductor firms involved in the AI infrastructure build-out.
Hari highlighted &#8220;ongoing tightness in High-Bandwidth Memory as a material positive for Buy-rated Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>).&#8221;
Even exchange-traded funds (ETFs) with a significant Nvidia exposure witnessed positive performance during Thursday's trading session. Here are some notable movers:
<ul>
<li>Strive U.S. Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NYSE">SHOC</a>): up 0.7%, despite Nvidia comprising 30% of the fund.</li>
<li>VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>): up 0.8%.</li>
<li>VanEck Fabless Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMHX#NYSE">SMHX</a>): up 1.2%. This newly launched ETF focuses on companies that specialize in chip design and development while outsourcing production.</li>
<li>Invesco PHLX Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NYSE">SOXQ</a>): up 1.4%.</li>
<li>First Trust Nasdaq Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXL#NASDAQ">FTXL</a>): up 1.6%.</li>
<li>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>): up 1.7%.</li>
<li>SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>): up 2.7%.</li>
</ul>
<h3 class="wp-block-heading">Thursday&#8217;s Top-Performing Semiconductor Stocks</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>1-Day %</td>
</tr>
<tr>
<td>Arm Holdings pic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>)</td>
<td>4.81%</td>
</tr>
<tr>
<td>Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)</td>
<td>4.50%</td>
</tr>
<tr>
<td>Marvell Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>)</td>
<td>4.29%</td>
</tr>
<tr>
<td>ON Semiconductor Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>)</td>
<td>4.18%</td>
</tr>
<tr>
<td>Qorvo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QRVO#NASDAQ">QRVO</a>)</td>
<td>3.73%</td>
</tr>
<tr>
<td>Teradyne, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TER#NASDAQ">TER</a>)</td>
<td>3.37%</td>
</tr>
<tr>
<td>Onto Innovation Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ONTO#NASDAQ">ONTO</a>)</td>
<td>3.06%</td>
</tr>
<tr>
<td>Microchip Technology Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>)</td>
<td>2.98%</td>
</tr>
<tr>
<td>Analog Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADI#NASDAQ">ADI</a>)</td>
<td>2.82%</td>
</tr>
<tr>
<td>Skyworks Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SWKS#NASDAQ">SWKS</a>)</td>
<td>2.80%</td>
</tr>
</tbody>
</table>
</figure>
Now Read:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40628887/nvidia-analysts-say-pullback-is-buying-opportunity-pushing-ai-envelope-too-signific">Nvidia Analysts Say Pullback Is Buying Opportunity: &#8216;Pushing AI Envelope Too Significant To Slow Down&#8217;</a></li>
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Semiconductor ETFs Rally Despite Nvidia Dip: 10 Chipmakers Defy The AI Darling's Drop

Shares of semiconductor and chip stocks are trading higher in possible reaction to NVIDIA's earnings report. NVIDIA fell despite better-than-expected financial results.

With NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) earnings in focus this week, analysts highlight key trends including the rise of artificial intelligence, strong demand from China, and geopolitical restrictions as crucial drivers for <a href="https://www.benzinga.com/topic/semiconductors">the semiconductor industry.</a>
Nvidia Earnings: Analysts expect Nvidia to report revenue of $28.7 billion for the second quarter, compared to $13.5 billion reported in last year's second quarter, according to data <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent082624&amp;t=be2bearmibe3na1">from Benzinga Pro.</a>
The company has beaten revenue estimates in eight straight quarters and nine of the last 10 quarters.
Analysts see Nvidia reporting second-quarter earnings per share of 64 cents compared to 27 cents in last year's second quarter. The company has beat earnings estimates from analysts in six straight quarters and eight of the last 10 quarters.
Cantor Fitzgerald analyst C.J. Muse calls Nvidia one of the top picks for the second half of 2024 ahead of the earnings report.
"Stick with AI first and foremost," Muse said of the semiconductor sector.
Muse said when it comes to semiconductor companies and AI, "you either have it or you don't."
"2Q continued to show a divergence between the haves and have-nots, with anything AI-related thriving, while other areas remain in the cyclical doldrums."
The analyst sees China demand showing relative strength, which could be a positive for Nvidia and the sector. Geopolitical tentions that are at the forefront of investor concerns appear to have a minimal impact on the companies based on results and guidance, the analyst said.
Muse said the delay of Nvidia's Blackwell is a real concern, but not on the level some are expecting.
"A 1-2 month delay makes little to no difference to our thesis on the name. Demand remains robust and supply remains tight."
Muse said the Blackwell concerns being overdone makes Nvidia's valuation "too cheap to ignore."
Read Also: <a href="https://www.benzinga.com/top-stories/24/08/40534794/nvidia-is-next-weeks-top-stock-market-strategist-says-why-best-long-term-idea-is-just-buy-nvidia-and">Nvidia Is Next Week&#8217;s Top Stock, Market Strategist Says: Why Best Long-Term Idea Is &#8216;Just Buy Nvidia And Put It Away&#8217;</a>
Other Semiconductor Picks: Muse highlights Nvidia as a top winner in the semiconductor sector for the second half of 2024 alongside Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), Western Digital Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDC#NASDAQ">WDC</a>), NXP Semiconductors (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>), ASML Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and Teradyne Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TER#NASDAQ">TER</a>) as top picks.
Broadcom, Micron, Teradyne and Marvell Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) are highlighted as likely outperformers for the AI theme according to the analyst.
"Spending patterns remain robust and we see no slowdown over the mid-term given criticality of investments. This group saw some of the greatest pullbacks during the recent SOX rollercoaster," Muse said of NVDA, AVGO, MU, MRVL and TER as AI picks.
The analyst mentions Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) as a potential value pick with its book value attractive, but not enough catalysts to drive upside for the stock.
"One would have to believe risk/reward is biased higher, and this will be an argument many make here."
Muse said this is the cheapest Intel has traded on a book value basis over the last three decades. "At the same time, the company is facing meaningful structural headwinds today and a still very uphill battle to regain its footing," Muse adds.
NVDA Price Action: Nvidia shares are down 3% to $126.90 on Monday, versus a 52-week trading range of $39.23 to $195.95. Nvidia stock is up over 150% year-to-date in 2024.
<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent082624&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="995" height="505" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/26140932/Screenshot-143.png" alt="" class="wp-image-514297" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/26140932/Screenshot-143.png 995w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/26140932/Screenshot-143-300x152.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/26140932/Screenshot-143-768x390.png 768w" sizes="(max-width: 995px) 100vw, 995px" /></a></figure>
Read Next: 
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40524164/nvidia-earnings-more-important-than-jerome-powells-jackson-hole-speech-for-wall-str">Nvidia Earnings &#8216;More Important&#8217; Than Jerome Powell&#8217;s Jackson Hole Speech For Wall Street, Says Expert: &#8216;Not Even Going To Tell You What He&#8217;s Going To Do After That…&#8217;</a></li>
</ul>
Photo: Shutterstock

Nvidia Stock, Semiconductor Sector Split Between AI Winners And Losers: Analyst Says 'Stick With AI First And Foremost'

WOLF

Shares of semiconductor stocks are trading higher amid overall market strength following Fed Chair Powell's comments about the economy and future rate cuts.

Cantor Fitzgerald analyst C J Muse upgraded Teradyne Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TER#NASDAQ">TER</a>) from Neutral to Overweight and a <a target="_blank" href="https://www.benzinga.com/quote/TER/analyst-ratings" rel="noreferrer noopener">$160&nbsp;price target</a>.
Muse termed Teradyne one of the sneakier AI plays in semiconductors, adding it to its Top Picks list. He said it has excellent leverage for networking and high-bandwidth memory&nbsp;(HBM) and is growing in traction on the Custom Silicon side of the house.
Teradyne is also well-levered to a broader industry recovery given an outsized share in Auto or Industrial test, strong positioning in the robotics market, and a solid exposure in the mobile market, where underutilized capacity has been reallocated to compute over the past few quarters, resulting in a robust setup for capacity builds once demand inevitably recovers, the analyst added.
Over the past five years, Teradyne has essentially traded in line with the SOX and at a slight premium to the front-end equipment suppliers, rerating to a ~20x multiple on average versus a ~15x multiple on average over the prior five years.
He added that Teradyne has traded more in the 20x-30x range over the past two years, benefiting from multiple expansions across the semiconductor industry.
The analyst writes that 25x is a more than fair multiple today, with upside potential with a greater appreciation of Nvidia Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) AI exposure. Taken together and discounting back, the analyst noted a fair value of $160 today (+22% upside) with a clear path higher after that.
Looking forward, Muse noted a path to $200+ as the discounting mechanism is removed, and the multiple potentially expands as investors seek out AI exposure beyond the core Nvidia, Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), and Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).&nbsp;&nbsp;
Given the profile of the company&#8217;s exposure, scarcity value in AI-leverage, and the path for upside to consensus estimates, Muse expects calendar years 2024 and 2025 EPS tracking to $3.10+ and $5.00+ versus consensus $3.03 and $4.69, and earnings power tracking towards the high end of the company&#8217;s target model in calendar year 2026.
Price Action: TER stock traded higher by 0.93% at $132.96 at the last check on Friday.
Image via Shutterstock

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our<a href="https://www.benzinga.com/analyst-stock-ratings"> analyst ratings page.</a>
<ul>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5809becc846faa000106ad2b/stephen-bersey">HSBC analyst Stephen Bersey</a> upgraded the rating for Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) from Hold to Buy, while raising the price target from $46 to $58. Cisco shares gained 6.8% to close at $48.53 on Thursday. <a href="https://www.benzinga.com/quote/CSCO/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Williams Trading analyst Sam Poser upgraded NIKE, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) from Sell to Buy and boosted the price target from $67 to $93. Nike shares gained 5.1% to close at $82.50 on Thursday. <a href="https://www.benzinga.com/quote/CNKESCO/analyst-ratings">See how other analysts view this sto</a>ck.</li>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/6331beac10b15f0001b58380/c-j%20muse">Cantor Fitzgerald analyst C J Muse </a>upgraded the rating for Teradyne, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TER#NASDAQ">TER</a>) from Neutral to Overweight and announced a $160 price target. Teradyne shares gained 5.2% to close at $131.73 on Thursday. <a href="https://www.benzinga.com/quote/TER/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Piper Sandler analyst Harsh Kumar upgraded Microchip Technology Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) from Neutral to Overweight, while increasing the price target from $90 to $100. Microchip shares gained 4.1% to settle at $81.30 on Thursday. <a href="https://www.benzinga.com/quote/MCHP/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Daiwa Capital analyst <a href="https://www.benzinga.com/analyst-stock-ratings/analyst/6331beac10b15f0001b58380/c-j%20muse">Narumi Nakagiri</a> upgraded the rating for Illumina, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>) from Neutral to Buy and boosted the price target from $120 to $154. Illumina shares gained 5.3% to close at $128.80 on Thursday. See how other analysts view this stock. S<a href="https://www.benzinga.com/quote/ILMN/analyst-ratings">ee how other analysts view this stock.</a></li>
</ul>
Considering buying CSCO stock? Here&#8217;s what analysts think:
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="579" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/16082653/image-1-47-1024x579.png" alt="" class="wp-image-498819" style="width:531px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/16082653/image-1-47-1024x579.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/16082653/image-1-47-300x170.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/16082653/image-1-47-768x434.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/16082653/image-1-47.png 1257w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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</ul>

Pre-Market Outlook

Markets

CSCO

ILMN

This Cisco Analyst Turns Bullish; Here Are Top 5 Upgrades For Friday

Cantor Fitzgerald analyst C J Muse upgrades Teradyne (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TER#NASDAQ">TER</a>) from Neutral to Overweight and announces $160 price target.

Cantor Fitzgerald Upgrades Teradyne to Overweight, Announces $160 Price Target

ALGM

AXTI

VECO

Shares of semiconductor stocks are trading higher amid overall market strength as stock rebound following upbeat US economic data, which could be alleviating recession worries.

Shares of semiconductor and chip stocks are trading higher amid overall market strength following softer-than-expected PPI figures.

ACMR

CRUS

Shares of semiconductor and chip stocks are trading higher amid an overall market rebound after softer-than-expected jobless claims possibly alleviated some US economic concerns.

AEIS

PDFS

Shares of semiconductor stocks are trading lower in sympathy with Intel, which reported worse-than-expected Q2 financial results and issued soft guidance.

CEVA

ICHR

WISA

Shares of chip stocks are trading lower amid overall market weakness. Recent earnings from large names in the sector may also be weighing on the sector.

PSTG

Shares of semiconductor, hardware, storage and chip-related stocks are trading higher in sympathy with AMD, which rose after reporting strong Q2 earnings. Some stocks in the sector may also be up amid reports of a new Biden administration rule on foreign chip equipment exports to China, which could exempt Japan, the Netherlands and South Korea.

DELL

Shares of semiconductor and hardware stocks are trading lower as the sector pulls back following this year's strength. The sector may also be under pressure amid weakness in Amkor and Lattice, which fell on soft guidance.

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
I am fascinated by robots. From an investment standpoint, robotics looks to be the natural complement to AI&rsquo;s advancement. Capable machinery powered by the latest artificial intelligence platform can help businesses perform complex mechanical tasks in manufacturing, healthcare, and other sectors, cutting down process times and increasing efficiency to its maximum. Autonomous mobile robots (AMRs) are already popular in some sectors, so this might be a good time for other investors to shop around for robotics stocks to buy and hold.&nbsp;



Of course, you wouldn&rsquo;t want to buy just any old company, which is why I&rsquo;ll screen the market for the best robotics stocks to buy, gauging them on their fundamentals and capacity for longevity. Remember, robotics is not a new industry, but recent advances in AI make it an increasingly attractive investment area.



To get my list, I screened companies that operate in the robotics industry or have robotics-related business segments using the following criteria:



<ul><li>Debt-to-equity ratio: 1.25 and below. The debt-to-equity ratio measures a company&rsquo;s financial leverage. The lower the leverage ratio, the better it manages its obligations,</li>



<li>Return-on-equity ratio: 15% and above. Return on equity measures how efficiently the company handles its capital to produce profits. Fifteen percent is considered a good level, so I scanned for companies with higher than that,</li>



<li>Analyst rating: Buy or higher.</li>
</ul>I then sorted the list based on the highest to lowest ROE. Here are the results:



<h2>Teradyne (TER)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/07/teradyne-ter-1600-300x169.jpg" alt="Teradyne Silicon Valley office"><div>Source: Michael Vi / Shutterstock.com</div></div>Teradyne (NASDAQ:<a href="https://investorplace.com/stock-quotes/ter-stock-quote/">TER</a>) is the go-to name for automated test equipment used in industrial applications. The company&rsquo;s core business specializes in the semiconductor market. Besides its testing expertise, the company offers other services like automation and robotics.



Teradyne recently appointed <a href="https://investors.teradyne.com/news/teradyne-robotics-welcomes-james-davidson-as-chief-ai-officer/47a6ac9d-8517-448f-a2f2-507541cbbaf4">James Davidson as its Chief AI Officer</a>, aiming to support its vision to revolutionize the manufacturing industry by leveraging Davidson&rsquo;s experience in both robotics and artificial intelligence. In addition, Teradyne has partnered with the AI powerhouse Nvidia (NASDAQ:<a href="https://investorplace.com/stock-quotes/nvda-stock-quote/">NVDA</a>) to support the <a href="https://investors.teradyne.com/news/teradyne-robotics-to-bring-the-power-of-ai-to-robotics-with-nvidia/f89e3bc0-1345-4627-9349-569db0a6b88d">development of its automation capabilities</a>.



While Teradyne may have had a slower FY 2023 due to its revenue decline, its Robotics segment boasted <a href="https://investors.teradyne.com/news/teradyne-reports-fourth-quarter-and-fiscal-year-2023-results/cdd55ba1-4dfe-413e-9c53-53b39875a928">50% year-over-year growth in Q4 2023</a>, highlighting its strong potential for a growing market segment.&nbsp;



In addition, revenue in Q2 2024 was up <a href="https://investors.teradyne.com/news/teradyne-reports-second-quarter-2024-results/bc78c615-ddd9-4528-bf2d-44056c36f186">7% </a><a href="https://investors.teradyne.com/news/teradyne-reports-second-quarter-2024-results/bc78c615-ddd9-4528-bf2d-44056c36f186" target="_blank">year over year</a>, surpassing its guidance. CEO Greg Smith emphasized its robotics sector, and the growing demand for AI has been a strong catalyst in its growth. With an ROE of 18.77% and an almost non-existent debt-to-equity ratio, the company boasts a strong proposition for long-term investors looking for robotics stocks to buy and hold. Even Wall Street&rsquo;s <a href="https://www.nasdaq.com/market-activity/stocks/ter/analyst-research">strong buy</a> consensus agrees with this.&nbsp;



<h2>ESAB Corporation (ESAB)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/10/robotics-stocks-ai-1600-300x169.jpg" alt="a robot built in the essence of a human raising its hand to its chin implying deep thought. future tech stocks. AI stocks"><div>Source: Phonlamai Photo / Shutterstock.com</div></div>ESAB Corporation (NYSE:<a href="https://investorplace.com/stock-quotes/esab-stock-quote/">ESAB</a>), the world leader in cutting, fabrication, and welding equipment, offers various industrial solutions to its customers, including robotics, gas control equipment, and digital solutions. The company operates in two main segments:



<ul><li>EMEA &amp; APAC: Focuses on operations in Europe, India, Africa, the Middle East, and Asia Pacific,</li>



<li>Americas: Focuses on its North and South American operations.</li>
</ul>ESAB has been experiencing <a href="https://finance.yahoo.com/quote/ESAB/financials/">moderate yet continuous revenue growth</a> for several years. While earnings growth over the last three years has been flat, the company maintains a return on equity (ROE) of 17.49%. Its debt-to-equity ratio also stands at 0.59, demonstrating its effectiveness in managing debt.



In addition, <a href="https://esabcorporation.com/newsroom/esab-corporation-announces-fourth-quarter-2023-results-and-initiates-full-year-2024-guidance/">President and CEO Shyam P. Kambeyanda</a> has highlighted that the company&rsquo;s drivers for growth and profitability come from its new innovative products and EBX initiatives. No wonder it boasts a <a href="https://www.nasdaq.com/market-activity/stocks/esab/analyst-research">strong buy</a> consensus rating among nine analysts. With its strong commitment to growth and cash flow generation, it is a no-brainer to check out ESAB if you want to buy and hold robotics stocks.



<h2>Novanta (NOVT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/06/stocks-to-buy-button-keyboard-1600-300x169.jpg" alt='Blue "buy now" button on a keyboard with finger pressing down on it. French Election Stock Picks'><div>Source: shutterstock.com/Odua Images</div></div>When it comes to robotics discussions, some might already know Novanta (NASDAQ:<a href="https://investorplace.com/stock-quotes/novt-stock-quote/">NOVT</a>) due to its reputation in electronics, metrology, robotics, and automation. The company operates in three main segments:



<ul><li>Precision Medicine and Manufacturing: laser technology and optical engine products,</li>



<li>Medical Solutions: medical-grade technologies and visualization solutions,</li>



<li>Robotics and Automation: optical and inductive encoders, servo drives, precision motors, intelligent robotic end-of-arm technology solutions, etc.</li>
</ul>Novanta had a strong FY 2023, reaching a record revenue of <a href="https://investors.novanta.com/news/news-details/2024/Novanta-Announces-Financial-Results-for-the-Fourth-Quarter-and-Full-Year-2023/default.aspx">$882 million</a>, a 2.4% improvement over the previous year&rsquo;s $861 million. However, its earnings per share decreased slightly from $2.06 to $2.02, due mostly to acquisitions.&nbsp;



&ldquo;Combined with continuing to institutionalize the Novanta Growth System deep into our Company&rsquo;s culture,&rdquo; said CEO and chair Matthijs Glastra, &ldquo;our playbook will continue to deliver predictable, consistent, long-term growth and shareholder value.&rdquo;



Novanta&rsquo;s debt-to-equity ratio is currently 0.75, and its return-to-equity ratio is 16.58%, highlighting its strong financial foundation and effective management. Wall Street consensus currently rates NOVT stock as <a href="https://www.nasdaq.com/market-activity/stocks/novt/analyst-research">a&nbsp;consensus buy</a>. With its diverse product lineup and sound financials, Novanta is a strong contender for the best robotics stocks to buy today.



On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
<div>Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/08/3-robotics-stocks-to-buy-and-hold-for-the-potential-of-huge-returns/">3 Robotics Stocks to Buy and Hold for the Potential of Huge Returns</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

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