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Richardson Electronics (RELL) Stock Moves -0.94%: What You Should Know

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Richardson Electronics (RELL - Free Report) closed the most recent trading day at $24.16, moving -0.94% from the previous trading session. This change was narrower than the S&P 500's 1.38% loss on the day. Elsewhere, the Dow lost 1.26%, while the tech-heavy Nasdaq lost 5.67%.

Heading into today, shares of the electronic components and communication products company had gained 3.96% over the past month, lagging the Computer and Technology sector's gain of 9.94% and outpacing the S&P 500's gain of 3.87% in that time.

Wall Street will be looking for positivity from Richardson Electronics as it approaches its next earnings report date. The company is expected to report EPS of $0.36, up 71.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $68.5 million, up 23.85% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.58 per share and revenue of $272 million. These totals would mark changes of +54.9% and +21.09%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Richardson Electronics. Recent revisions tend to reflect the latest 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Richardson Electronics currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Richardson Electronics is holding a Forward P/E ratio of 15.44. This represents a premium compared to its industry's average Forward P/E of 9.09.

It is also worth noting that RELL currently has a PEG ratio of 0.77. 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. Electronics - Parts Distribution stocks are, on average, holding a PEG ratio of 1.03 based on yesterday's closing prices.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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