Teradyne (NYSE:TER) — The semiconductor group has been a leader this year, but TER has not participated and should be sold. One reason for its failure is that, in September, earnings were adjusted lower to $1.38 this year versus $1.73 last year.
But on Oct. 31, Teradyne’s revenues disappointed analysts, and S&P dropped their 2011 estimate to $1.32 and predicts a decline to $1.26 in 2012.
Technically the stock reversed from its 200-day moving average and has made a series of lows. A failure to hold at the 50-day moving average would signal a test of the lows at $11. Sell or short this stock..