Richardson Electronics (RELL) Stock Sinks As Market Gains: What You Should Know
Richardson Electronics (RELL) closed at $18 in the latest trading session, marking a -1.75% move from the prior day. This change lagged the S&P 500's 0.37% gain on the day. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.
Coming into today, shares of the electronic components and communication products company had gained 4.69% in the past month. In that same time, the Computer and Technology sector gained 6.31%, while the S&P 500 gained 4.31%.
Investors will be hoping for strength from Richardson Electronics as it approaches its next earnings release. 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.
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.
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 currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Richardson Electronics is currently trading at a Forward P/E ratio of 15.27. This valuation marks a premium compared to its industry's average Forward P/E of 9.21.
We can also see that RELL currently has a PEG ratio of 0.76. 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 0.88 at yesterday's closing price.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 118, 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.
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
