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Richardson Electronics (RELL) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Richardson Electronics (RELL - Free Report) closed at $21.24, marking a -1.53% move from the previous day. This move lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 1.47%.
Coming into today, shares of the electronic components and communication products company had lost 10.2% in the past month. In that same time, the Computer and Technology sector lost 3.15%, while the S&P 500 lost 2%.
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.
RELL's full-year Zacks Consensus Estimates are calling for earnings of $1.58 per share and revenue of $272 million. These results would represent year-over-year changes of +54.9% and +21.09%, respectively.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Richardson Electronics has a Forward P/E ratio of 13.65 right now. For comparison, its industry has an average Forward P/E of 8.78, 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. 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 was holding an average PEG ratio of 0.99 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 5, which puts it in the top 2% 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.
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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Richardson Electronics (RELL - Free Report) closed at $21.24, marking a -1.53% move from the previous day. This move lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 1.47%.
Coming into today, shares of the electronic components and communication products company had lost 10.2% in the past month. In that same time, the Computer and Technology sector lost 3.15%, while the S&P 500 lost 2%.
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.
RELL's full-year Zacks Consensus Estimates are calling for earnings of $1.58 per share and revenue of $272 million. These results would represent year-over-year changes of +54.9% and +21.09%, respectively.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Richardson Electronics has a Forward P/E ratio of 13.65 right now. For comparison, its industry has an average Forward P/E of 8.78, 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. 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 was holding an average PEG ratio of 0.99 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 5, which puts it in the top 2% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.