Richardson Electronics (RELL) Dips More Than Broader Markets: What You Should Know
Richardson Electronics (RELL) closed at $19.82 in the latest trading session, marking a -1.98% move from the prior day. This change lagged the S&P 500's 0.15% loss on the day. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 3.16%.
Heading into today, shares of the electronic components and communication products company had lost 9.33% over the past month, lagging the Computer and Technology sector's loss of 3.13% and the S&P 500's loss of 5.39% in that time.
Richardson Electronics will be looking to display strength as it nears its next earnings release. In that report, analysts expect Richardson Electronics to post earnings of $0.36 per share. This would mark year-over-year growth of 71.43%. Our most recent consensus estimate is calling for quarterly revenue of $68.5 million, up 23.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.58 per share and revenue of $272 million, which would represent changes of +54.9% and +21.09%, respectively, from the prior year.
Any recent changes to analyst estimates for Richardson Electronics should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Richardson Electronics is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Richardson Electronics currently has a Forward P/E ratio of 12.8. This valuation marks a premium compared to its industry's average Forward P/E of 8.2.
It is also worth noting that RELL currently has a PEG ratio of 0.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Parts Distribution industry currently had an average PEG ratio of 0.9 as of yesterday's close.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Richardson Electronics, Ltd. (RELL) : Free Stock Analysis Report
