Richardson Electronics (RELL) Dips More Than Broader Markets: What You Should Know
Richardson Electronics (RELL) closed at $18.09 in the latest trading session, marking a -1.74% move from the prior day. This move lagged the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 1.18%.
Heading into today, shares of the electronic components and communication products company had gained 1.54% over the past month, lagging the Computer and Technology sector's gain of 12.92% and the S&P 500's gain of 7.18% in that time.
Wall Street will be looking for positivity from Richardson Electronics as it approaches its next earnings report date. The company is expected to report EPS of $0.19, down 38.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $61.5 million, down 0.21% from the year-ago period.
Any recent changes to analyst estimates for Richardson Electronics should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Richardson Electronics is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Richardson Electronics has a Forward P/E ratio of 15.34 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.14.
Meanwhile, RELL's PEG ratio is currently 0.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics - Parts Distribution stocks are, on average, holding a PEG ratio of 0.87 based on yesterday's closing prices.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 117, which puts it in the top 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Richardson Electronics, Ltd. (RELL) : Free Stock Analysis Report
