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.
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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