Richardson Electronics (RELL) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Richardson Electronics (RELL) closed at $22.33, marking a -1.15% move from the previous day. This move lagged the S&P 500's daily loss of 0.88%. At the same time, the Dow lost 0.73%, and the tech-heavy Nasdaq lost 4.59%.
Heading into today, shares of the electronic components and communication products company had gained 0.85% over the past month, lagging the Computer and Technology sector's gain of 14.64% and the S&P 500's gain of 5.83% in that time.
Investors will be hoping for strength from Richardson Electronics as it approaches 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.
It is also important to note the recent changes to analyst estimates for Richardson Electronics. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Richardson Electronics is currently a Zacks Rank #2 (Buy).
In terms of valuation, Richardson Electronics is currently trading at a Forward P/E ratio of 14.3. This valuation marks a premium compared to its industry's average Forward P/E of 8.64.
It is also worth noting that RELL currently has a PEG ratio of 0.71. 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 1.48 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 22, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Richardson Electronics, Ltd. (RELL) : Free Stock Analysis Report
