Richardson Electronics (RELL) Gains But Lags Market: What You Should Know
In the latest trading session, Richardson Electronics (RELL) closed at $18.41, marking a +0.88% move from the previous day. This change lagged the S&P 500's 1.22% gain on the day. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 4.63%.
Prior to today's trading, shares of the electronic components and communication products company had gained 5.01% over the past month. This has lagged the Computer and Technology sector's gain of 12.34% and the S&P 500's gain of 6.22% in that time.
Richardson Electronics will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.19, down 38.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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 typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 #3 (Hold).
Valuation is also important, so investors should note that Richardson Electronics has a Forward P/E ratio of 15.21 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.97.
Investors should also note that RELL has a PEG ratio of 0.76 right now. 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. The Electronics - Parts Distribution was holding an average PEG ratio of 0.85 at yesterday's closing price.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 116, putting it in the top 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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
