Complexity, Enterprise, And Share Gains Are All Still Boosting Teradyne

Teradyne (NASDAQ:TER) is going to go down as another example in my book of how you shouldn't underestimate companies holding a hot hand. While it has been some time since the shares have been conventionally cheap, the company has continued to exceed expectations on a combination of increased testing complexity, growth in key markets, and market share growth with new products.

Surprising to me is that the shares have actually lagged the SOX a bit since my last update. The outperformance on a trailing one-year basis is still meaningful though, and Teradyne bounced back well from the March lows. Valuation looks quite reasonable now, which actually worries me - is the Street starting to price in a second-half slowdown and shifting away in anticipation, or is this just an underappreciated story at this point?

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Complexity, Enterprise, And Share Gains Are All Still Boosting Teradyne