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Richardson Electronics (RELL) Dips More Than Broader Markets: What You Should Know
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Richardson Electronics (RELL - Free Report) closed the most recent trading day at $21.33, moving -0.97% from the previous trading session. This move lagged the S&P 500's daily loss of 0.25%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 5.91%.
Coming into today, shares of the electronic components and communication products company had lost 18.72% in the past month. In that same time, the Computer and Technology sector lost 3.63%, while the S&P 500 lost 2.59%.
Richardson Electronics will be looking to display strength as it nears its next earnings release, which is expected to be January 4, 2023. On that day, Richardson Electronics is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 3.33%. Meanwhile, our latest consensus estimate is calling for revenue of $64.5 million, up 19.49% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.31 per share and revenue of $260 million. These totals would mark changes of +28.43% and +15.75%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Richardson Electronics. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. 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 16.44. Its industry sports an average Forward P/E of 6.85, so we one might conclude that Richardson Electronics is trading at a premium comparatively.
Investors should also note that RELL has a PEG ratio of 0.82 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Parts Distribution industry currently had an average PEG ratio of 0.8 as of yesterday's close.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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 (RELL) Dips More Than Broader Markets: What You Should Know
Richardson Electronics (RELL - Free Report) closed the most recent trading day at $21.33, moving -0.97% from the previous trading session. This move lagged the S&P 500's daily loss of 0.25%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 5.91%.
Coming into today, shares of the electronic components and communication products company had lost 18.72% in the past month. In that same time, the Computer and Technology sector lost 3.63%, while the S&P 500 lost 2.59%.
Richardson Electronics will be looking to display strength as it nears its next earnings release, which is expected to be January 4, 2023. On that day, Richardson Electronics is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 3.33%. Meanwhile, our latest consensus estimate is calling for revenue of $64.5 million, up 19.49% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.31 per share and revenue of $260 million. These totals would mark changes of +28.43% and +15.75%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Richardson Electronics. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. 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 16.44. Its industry sports an average Forward P/E of 6.85, so we one might conclude that Richardson Electronics is trading at a premium comparatively.
Investors should also note that RELL has a PEG ratio of 0.82 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Parts Distribution industry currently had an average PEG ratio of 0.8 as of yesterday's close.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.