Yesterday when the market opened, there were a few changes to the S&P Indices.
The adjustments to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 were announced earlier in the month and were implemented to ensure that each index more appropriately represents its market cap range.
Most notable are the changes in the S&P 500 since this index is used as a benchmark for the overall market. Etsy Inc. (NASDAQ: ETSY), Teradyne Inc (NASDAQ: TER), and Catalent Inc (NYSE: CTLT) replaced H&R Block, Coty, and Kohl’s.
This is exactly what we saw in the Dow Jones Industrial Average and wrote to you about on September 3rd. Tech is king and everyone else needs to get out of the way. At least that is what the market is signaling.
Even though it’s tech that’s taking the crown, it wasn’t Tesla that was added to the index. Instead, we’re talking about an e-commerce site, a biotech…and my personal favorite Teradyne.
Teradyne is a driving force behind smart devices, life-saving medical equipment, and data storage.
Many, if not all, of the electronic devices that you own, have been tested by Teradyne. The company knows that reliability and performance are critical.
Its advanced test solutions can be used on semiconductors, electronics systems, wireless devices, and more to ensure that the products perform as designed.
And its automation offerings can help manufacturers of all sizes improve productivity and lower costs.
Essentially the company is based on the automation of two tasks: repetitive manual tasks and electronic testing. Both of these are essential in the rapidly changing landscape of technology.
We’re on the brink of accelerated data with 5G implementation. This means new phones, computers, and tablets.
It also means more than just updating devices that we already have, 5G will be about integrating the physical and the digital world.
More technology in your car, in your refrigerator, your house thermostat…how about even your mailbox…and all that is going to need to be automated and tested.
For the second quarter, Teradyne saw revenue grow 49% compared to the same quarter of the previous year. The company has even been able to continue paying its 10-cent quarterly dividend while companies all over are cutting and suspending payouts.
As I mentioned above, the company has two main sections. Test revenue grew 59% based on strength in the semiconductor market, but industrial automation revenue declined 21%.
Grab a piece of paper and pen to write this down…
Because you’re about to see the name and ticker symbol of the ONLY 5G STOCK every investor should own.
You can get the name and ticker of this company right here, no strings attached. But you better act fast…
Because the Federal Communications Commission, the government agency in charge of 5G, just scheduled a major announcement that would send shares soaring once announced.
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If we take a moment to think about it logically, that makes sense. With production shut down due to the global pandemic, the manufacturing wasn’t happening. But we can expect to see that recovery through the end of the year.
Check out share prices for the past year.
From the March low to the August high, share prices jumped 107%. But here’s the interesting part.
Since that August high shares have slid 16% creating a perfect buying opportunity.
I definitely think this is one to add to your portfolio. 5G and eventually 6G are continuing to make data more accessible.
That means upgrading and creating new devices. And Teradyne will collect a little piece of each one.
To your prosperity and health,
Joshua M. Belanger
Executive Publisher & Founder