With Teradyne Stock Surging, Have You Considered The Downside?
Teradyne (TER) stock is up 40.3% in 21 trading days. The rally reflects surging AI semiconductor test demand and strong Q4 earnings, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?
Before judging its downturn resilience, let’s look at where Teradyne stands today.
- Size: Teradyne is a $48 Bil company with $2.9 Bil in revenue currently trading at $304.89.
- Fundamentals: Last 12-month revenue growth of 4.5% and operating margin of 18.8%.
- Liquidity: Has a debt-to-equity ratio of 0.0 and Cash to Assets ratio of 0.08
- Valuation: Teradyne stock is currently trading at P/E multiple of 109.1 and P/EBIT multiple of 92.1
- Has returned (median) 95% within a year following sharp dips since 2010. See TER Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Very High valuation – making the stock Unattractive. For details, see Buy or Sell TER Stock
That brings us to the key consideration for investors chasing this rally: how resilient is TER stock if markets turn south? This is where our downturn resilience framework comes in. Suppose TER stock falls 20-30% to $213 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- TER stock fell 57.7% from a high of $168.56 on 27 December 2021 to $71.37 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 29 October 2025
- Since then, the stock increased to a high of $310.01 on 9 February 2026 , and currently trades at $304.89
| TER | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -57.7% | -25.4% |
| Time to Full Recovery | 1,111 days | 464 days |
2020 Covid Pandemic
- TER stock fell 41.9% from a high of $76.21 on 23 January 2020 to $44.29 on 20 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 5 June 2020
| TER | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -41.9% | -33.9% |
| Time to Full Recovery | 77 days | 148 days |
2018 Correction
- TER stock fell 42.0% from a high of $49.92 on 12 March 2018 to $28.94 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 24 July 2019
| TER | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -42.0% | -19.8% |
| Time to Full Recovery | 212 days | 120 days |
2008 Global Financial Crisis
- TER stock fell 83.8% from a high of $18.30 on 21 June 2007 to $2.97 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 February 2011
| TER | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -83.8% | -56.8% |
| Time to Full Recovery | 818 days | 1,480 days |
Feeling jittery about TER stock? Consider a portfolio approach.
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