Teradyne, Inc. vs Materials Select Sector SPDR Fund — how do they compare? Teradyne, Inc. trades at $401.8 (market cap $62.34B), while Materials Select Sector SPDR Fund trades at $49.42 (market cap $7.73B). The key difference: Teradyne, Inc. is far larger — about 8.1× Materials Select Sector SPDR Fund's market cap, and Teradyne, Inc. pays a 0.13% dividend while Materials Select Sector SPDR Fund pays none. Which is the better fit depends on your goals — on Pluang, investors hold Teradyne, Inc. for 37 Days and Materials Select Sector SPDR Fund for 70 Days on average.
| TER | XLB | |
|---|---|---|
Market Cap | $62.34B | $7.73B |
Volume | 3,368,404 | 13,681,146 |
Sector | Technology | — |
52-Week High | $483.84 | $53.67 |
52-Week Low | $132.05 | $42.23 |
Typical Hold Time | 37 Days | 70 Days |
Enterprise Value | $62.08B | — |
Dividend Yield | 0.13% | — |
Signals from Pluang's Aura AI — not financial advice
Teradyne (TER) trades at $403.88, down 1.92% on the day, yet maintains a bullish technical stance with strong analyst support. The company exhibits robust profitability with a 25.77% net income margin and 36.66% ROE, supported by consecutive earnings beats. Recent news highlights expansion in AI-driven test equipment, including the Magnum E2 and Iris 100 platforms, positioning TER to capitalize on semiconductor and data center demand growth.
The outlook is positive, driven by strategic product launches and strong earnings momentum, with a consensus price target of $461.50 implying ~14% upside. Key risks include execution challenges in a competitive semiconductor equipment market and sensitivity to cyclical industry demand, which could pressure valuation multiples if growth slows.
XLB, the Materials Select Sector SPDR ETF, trades at $49.55, up 1.16% today, but technical indicators signal a bearish trend with moving averages and ADX pointing lower. The fund is heavily concentrated in chemicals (49% of assets) and faces cyclical pressures, with recent news highlighting sector volatility amid AI-driven infrastructure demand. Key support sits at $48, while resistance is at $50.
The outlook for XLB is cautious due to sector overvaluation concerns and bearish technicals. Opportunities lie in long-term infrastructure trends, but risks include economic sensitivity and high concentration. Investors should weigh cyclical exposure against potential growth from manufacturing and AI-related material demand.
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Teradyne provides testing equipment, including automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems and wireless testing for devices. The firm entered the industrial automation market in 2015, into which it sells collaborative and autonomous robots for factory applications. Teradyne serves numerous end markets and geographies directly and indirectly with its products, but its most significant exposure is to semiconductor testing, which made up 71% of 2021 sales. Teradyne serves vertically integrated, fabless, and foundry chipmakers with its equipment.
Read more on TER →In seeking to track the performance of the index, the fund employs a replication strategy. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: chemicals; metals and mining; paper and forest products; containers and packaging; and construction materials. The fund is non-diversified.
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