Richardson Electronics (RELL) Stock Sinks As Market Gains: What You Should Know
Richardson Electronics (RELL) closed at $21.20 in the latest trading session, marking a -1.62% move from the prior day. This move lagged the S&P 500's daily gain of 0.31%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq lost 0.28%.
Prior to today's trading, shares of the electronic components and communication products company had lost 6.87% over the past month. This has lagged the Computer and Technology sector's loss of 0.25% and the S&P 500's loss of 1% in that time.
Richardson Electronics will be looking to display strength as it nears its next earnings release. On that day, Richardson Electronics is projected to report earnings of $0.36 per share, which would represent year-over-year growth of 71.43%. Meanwhile, our latest consensus estimate is calling for revenue of $68.5 million, up 23.85% from the prior-year quarter.
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.
Investors might also notice recent changes to analyst estimates for Richardson Electronics. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Richardson Electronics is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Richardson Electronics's current valuation metrics, including its Forward P/E ratio of 13.64. For comparison, its industry has an average Forward P/E of 8.51, which means Richardson Electronics is trading at a premium to the group.
We can also see that RELL currently has a PEG ratio of 0.68. 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 was holding an average PEG ratio of 0.96 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 11, putting it in the top 5% 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.
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
