10 Best GARP Stocks to Buy Now

3. Teradyne Inc. (NASDAQ:TER)

Fwd. P/E: 27

Expected EPS Growth Next FY: 22%

Number of Hedge Fund Holders: 61

Upside Potential: 29%

Teradyne Inc. (NASDAQ:TER) provides automated test equipment and robotics solutions globally. Its test systems are used to evaluate semiconductors, wireless products, data storage, and complex electronic systems across industries such as consumer electronics, automotive, industrial, and computing. Additionally, its robotics products include collaborative robotic arms and autonomous mobile robots (AMRs) for manufacturing, logistics, and industrial customers worldwide.

In the fourth quarter of 2024, Teradyne Inc.’s (NASDAQ:TER) Semiconductor Test business did well, driven by demand in Cloud AI. However, its industrial automation market remained weak, which impacted the Robotics business and thus partially offset the growth in the test business. That said, the company still managed to post a 12% growth in total revenue and a 20% rise in adjusted EPS of $0.95. For 2025, management expects the test business to continue its momentum and see revenue growth. The company also plans to restructure its Robotics business in early 2025 to improve operational efficiency.

Over the long term, the company is targeting revenue growth from $2.8 billion in 2024 to $5 billion in 2028, implying a CAGR of 12%-18%. At the same time, they expect EPS to grow nearly threefold, from $3.22 to $8.25, during the same period.

Analyst opinions remained positive on the shares. On March 7, analysts from Vertical Research initiated coverage on the shares with a Buy rating and a $135 price target. In early February, a Baird analyst had lowered their price target on Teradyne Inc. (NASDAQ:TER) to $140 from $150 but reiterated his Outperform rating on the shares.